same item does stack, i got 2 of them

but the differences between 0 and +2 morale aren't quite much
it sould be improved

Yes. Morale boosts stack.

I *think* the maximum morale you can have is +3.

Morale increases the units attack, defense and critical strike chance. I am not sure how much exactly though. But it seems to be a decent amount.

Elven crown and Elven wife, grants +2 morale to all elfs.

Dwarven keg and dwarven wife, grants +2 morale to all dwarfs.

Demon wife, grants +1 morale to all demons (I am unsure if there's a +demon morale item)

On a sidenode, did anyone find a way to increase the moral of dragons?

It would be great to know what is the bonus on attack, defense and Init provided by Morale .
Is this written in the russian fan manual ?

+10% attack and defense per point of morale up to +30% for +3 morale
+25% chance of critical for +1 morale
+50% chance of critical for +2 morale
+100% chance of critical for +3 morale

This shows you how good Anga's Ring is in this game. In fact I think it's probably the most overpowered item overall. Just load up on Sprites, Lake Fairies, Dryads and Demonesses and off you go. :cool:

Just to add Black knights give +1 morale to all undead units.. Which is weird cuz I though undead are not affected by morale ;p

When you click on the unit screen and hover over the morale icon it is show how exactly the morale is composed. I've managed to make a whole army of High Morale(Elves only, with Neoka and the crown giving +1 to morale of the elves). Still i don't think morale is very usefull. It takes the base attack of the creature so in most cases it is 2-4 attack or defense in difference. i've used an army of elves and demons (demons gives -2 morale to the elves in the army) and i barely saw any difference.

But wouldn't that give you -2 morale penalty for having both demons and elves in same army?

At least without 2nd level of tolerance.