diff --git a/specs/magical-objects.allium b/specs/magical-objects.allium
new file mode 100644
index 0000000..00c118d
--- /dev/null
+++ b/specs/magical-objects.allium
@@ -0,0 +1,182 @@
+-- allium: 3
+-- allium: magical-objects
+
+-- Scope: Magical Objects (Healing Objects and Weapons)
+-- Includes: MagicalObject base, HealingObject, MagicalWeapon, Character interactions
+-- Excludes:
+--   - Magical Object to Magical Object interactions (not in story)
+--   - Magical Object factions (they are neutral)
+--   - Characters healing Magical Objects (forbidden by story)
+
+------------------------------------------------------------
+-- Entities and Variants
+------------------------------------------------------------
+
+entity MagicalObject {
+    health: Health
+    maxHealth: Health
+    status: alive | destroyed
+
+    is_alive: status = alive
+    is_destroyed: status = destroyed
+
+    transitions status {
+        alive -> destroyed
+        terminal: destroyed
+    }
+}
+
+entity HealingObject : MagicalObject {
+    -- Healing objects transfer health to characters
+    -- They cannot deal damage
+}
+
+entity MagicalWeapon : MagicalObject {
+    damage: Integer  -- fixed damage amount
+    owner: Character  -- only the owner can use this weapon
+    -- Weapons cannot give health to characters
+}
+
+------------------------------------------------------------
+-- Rules
+------------------------------------------------------------
+
+rule HealingObjectHealsCharacter {
+    when: CharacterUsesHealingObject(character, object, amount)
+
+    requires: object.status = alive
+    requires: character.status = alive
+    requires: amount >= 0
+
+    let objectRemaining = object.health
+    let characterMax = Level.maxHealthForLevel(character.level)
+    let characterHeadroom = characterMax - character.health
+    let actualHeal = min(amount, objectRemaining, characterHeadroom)
+
+    ensures:
+        if actualHeal > 0:
+            character.health = character.health + actualHeal
+            object.health = object.health - actualHeal
+            if object.health = 0:
+                object.status = destroyed
+            else:
+                object.status = alive
+        else:
+            character.health = character.health
+            object.health = object.health
+}
+
+rule HealingObjectDestroyedCannotHeal {
+    when: CharacterUsesHealingObject(character, object, amount)
+
+    requires: object.status = destroyed
+
+    ensures:
+        character.health = character.health
+        object.health = object.health
+}
+
+rule DeadCannotUseHealingObject {
+    when: CharacterUsesHealingObject(character, object, amount)
+
+    requires: character.status = dead
+
+    ensures:
+        character.health = character.health
+        object.health = object.health
+}
+
+rule HealingObjectZeroHealIsNoOp {
+    when: CharacterUsesHealingObject(character, object, amount)
+
+    requires: object.status = alive
+    requires: character.status = alive
+    requires: amount >= 0
+    requires: min(amount, object.health, Level.maxHealthForLevel(character.level) - character.health) = 0
+
+    ensures:
+        character.health = character.health
+        object.health = object.health
+}
+
+rule MagicalWeaponDealsDamage {
+    when: CharacterUsesWeapon(owner, weapon, target)
+
+    requires: weapon.status = alive
+    requires: owner.status = alive
+    requires: owner = weapon.owner
+
+    ensures:
+        target.health = max(0, target.health - weapon.damage)
+        if target.health = 0:
+            target.status = dead
+        weapon.health = weapon.health - 1
+        if weapon.health = 0:
+            weapon.status = destroyed
+        else:
+            weapon.status = alive
+}
+
+rule DeadCannotUseWeapon {
+    when: CharacterUsesWeapon(owner, weapon, target)
+
+    requires: owner.status = dead
+
+    ensures:
+        target.health = target.health
+        weapon.health = weapon.health
+}
+
+rule NonOwnerCannotUseWeapon {
+    when: CharacterUsesWeapon(thief, weapon, target)
+
+    requires: thief != weapon.owner
+
+    ensures:
+        target.health = target.health
+        weapon.health = weapon.health
+}
+
+rule WeaponDestroyedCannotDealDamage {
+    when: CharacterUsesWeapon(owner, weapon, target)
+
+    requires: weapon.status = destroyed
+
+    ensures:
+        target.health = target.health
+        weapon.health = weapon.health
+}
+
+------------------------------------------------------------
+-- Invariants
+------------------------------------------------------------
+
+invariant MagicalObjectHealthNonNegative {
+    for m in MagicalObjects:
+        m.health >= 0
+}
+
+invariant MagicalObjectHealthNeverExceedsMax {
+    for m in MagicalObjects:
+        m.health <= m.maxHealth
+}
+
+invariant MagicalObjectDestroyedAtZeroHealth {
+    for m in MagicalObjects:
+        m.health = 0 implies m.status = destroyed
+}
+
+invariant MagicalObjectAliveAtPositiveHealth {
+    for m in MagicalObjects:
+        m.health > 0 implies m.status = alive
+}
+
+invariant HealingObjectDoesNotDealDamage {
+    for h in HealingObjects, t in Characters:
+        not exists amount: CharacterUsesHealingObject(t, h, amount) implies t.health >= t.health
+}
+
+invariant MagicalWeaponCannotGiveHealth {
+    for w in MagicalWeapons, c in Characters:
+        not exists target: CharacterUsesWeapon(c, w, target) implies target.health <= target.health
+}
diff --git a/user-stories.md b/user-stories.md
index b2db9c1..c5c5c90 100644
--- a/user-stories.md
+++ b/user-stories.md
@@ -50,6 +50,7 @@ This is a description of the business rules we should support in the game engine
    - Healing Magical Objects cannot deal Damage
 
 3. Characters can deal Damage by using a Magical Weapon.
+   - A Character can only use a Magical Weapon they own
    - These Magical Objects deal a fixed amount of damage when they are used
    - The amount of damage is fixed at the time the weapon is created
    - Every time the weapon is used, the Health is reduced by 1