Race restriction

As of Update 19, race-restricted items no longer drop. Existing items are not modified. Similar benefit (lower minimum level) can be found on items with Masterful Craftsmanship.

A race restricted item can only be used by the specified race or a character with sufficient Use Magic Device ability. A race restricted item has a minimum level two lower than non-restricted version of the same item.
 * e.g. a Helm of Intimidation +7 has a minimum level of 7, a Helm of Intimidation +7 for dwarves only has a minimum level of 5.

For items with minimum level (before race restriction) of 21 or more, the race restriction reduces the minimum level only by 1.
 * e.g. a Dex 6 Ring of Heavy Fortification has a normal ML 21; its race restricted ML is 20.

Minimum level decrease of race restricted items can bypass even the absolute minimum level of items. E.g., it is possible to find ML:14 Spiritcraft Scalemail (absolute minimum level: 16). Deconstructing such item (for Cannith Crafting) increases the ML to AML.

If you are using a race restricted item with UMD you only have to achieve the required UMD when you equip the item. (You can use Eagle's Splendor spell buff, ability boosts or other temporary means to equip the item). If your UMD is not high enough to use your equipped gear when you log in, the gear will be in your inventory.

Equipment can also be restricted by alignment.