How was queen Emeralda you ask? Boy what a woman, at her time all the captains were young, good-looking, boys; she had her fun.
Now don't get me wrong, she wasn't so bad for an aristocrat, she just had a hunger for fresh meat, if you know what i mean.
This elaborate dress was made using magical imbued cloths of various kind. Apparently is a very formal dress for woman, that cover almost all her body parts, someone could also call it prudish.
But the magical cloths of which the dress is made have the ability to be invisible only to the people selected by the wearer, this way she can attend formal event (like ball and so on ) looking very chaste to everyone.But when she met someone attractive, or a guy she want to tease a little, she can make some part of the dress invisible to him; showing an ample cleavage, a naked leg; being more 'sexy' in various way and son on. If she wanted the whole dress could be invisible for the guy; letting him see what's beneath.
The effect vanish if the wearer take off the dress, there's virtually no limit to how many person the wearer can target, they just have to be in her line of view. After that the effect will continue untill the dress is taken off or the wearer decide to stop it.
A little bit of history
Queen Emeralda was a beautiful woman in her youth ( albeit considered ugly in her later years) who loved sex, good looking boys and showing off her beauty.
The problem was that her position required a certain discretion, so she came up with the 'flirting' dress idea; and she liked it so much that soon all her wardrobe were composed of this kind of dresses.
At court was widely know that the fastest road to be a captain passed through her bed, and when at balls or mundane events a young man was faced with an half-naked queen, that a moment before was fully dressed, he knew what he had to do if he didn't want to jeopardize his career.
This wasn't much of problem in the younger day of the queen, tough it became a lot more awkward (for the selected guy at least) in her later years.
She lived a very long life and it's said that in her later years her approach was even bolder. She married and have gave birth many times (a thing that led to the demise of her beauty), her husband was a weak man completely dominated by her.
Even after her death the popularity of this kind of dresses keep growing, today they are even used for exclusive brothel's display by skilled dancer who play with the 'you can see, now you can't' effect.
Known uses of the flirting dress:
Elizabeth Sheybad and the Flirting Dress
The Gorgon Rune and the Flirting Dress
This was inspired by a recent comic strip by oglaf (which i can't link since it have some adult content) and the real character of Maria Luisa of Borbone - Parma, Queen of Spain
Cyberpunk / Sci-fi variant: (suggested by Longspeak)
This dress is made of an advanced fabric with the ability to change color, or even turn invisible, following the imput of the cortex implant of the wearer, even thought the producer didn't bother to create any other way of activation (after all who doesn't have a cortex implant these days?) a couple of this dresses were modded by some purist to respond to a remote.
The producer is a famous fashion firm that launched a line of 'invisible fashion' called 'The invisible line'. The line include cloth for male and female, but the real innovation is the program that control the invisible/color changing fabric.
The basic version can 'just' select (from a list of preset) which area of the dress have to be visible or have to change color, grating the wearer a lot of variation to use to show himself (even in cold area!).
The firm sell in his app store a costly upgraded version of the program that grant the wearer total controll of the fabric, playing with invisible area and color the dress can change every second, a moment being an intricate spider net the next an ever changing rainbow of colours. This app is mostly used as developer tool by artists and designers that create original designs and then sell them to rich and eccentric clients. This way the dress itself became the canvas of a whole new artistic movement.
Originally the fabric was developed by the military for the espionage sector (in which is still used as a sort of chameleon suit), in time it became surpassed by the latest invisibility tech; that grant total invisibility to user not only to his dress. After that the license was bought by the fashion firm.
Lately an hacker released on the net a new virus, called 'fashion victim', that target the dress's program, take controll of it and use the dress to show the private message of the wearer and / or various porn images.
I was stuck for how this might be used in a game, until I was reading Overly Attached Chainmail. I've suggested a link, but here's my thought.
You know that age old argument about chainmail bikinis? Maybe all those chainmail bikinis are really Flirting Chainmail??? All the protection of chainmail, all the fan service of a bikini!
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? Responses (18)

First I just felt I should point out an error context wise,
Queen Emeralda was a beautiful woman in her youth ( albeit considered ugly in his later years)
As for the dress itself, I can see it being of some interesting use as part of a brothel, or a gift to a prominent NPC who may not know it's effects or how to utilize them,
Other than that I'm not sure it's of much use in most games, expect perhaps as a item of value to be bargained with, or used as a distraction during some other event.
Still fun and interesting sub, and the rumors of the dresses existence certainly adds life to a world history.

Thanks i fixed it!
As for the use it dependes on the campaign, i had lots of fun in mine just recently having the queen itself flirting with the (shy) paladin of the group :D
Of course it'll hardly be a major or important item in any campaign.

Interesting, and something that I could see the elite and wealthy coming up with in a fantasy environment. I just have one question, what do I do with this as a Dungeon Master?

That depends greatly on the style of gming. Personally i love this kind of items and use them a lot.
For example it could be used:
to add flavour to the world, also helping the immersion of the player
to contribute the building of png with peculiar nature (like the queen for example) and help giving them a character
to show something peculiar or fun to the local charismatic-girl character (be it a male or a female player) that she'll want to buy / obtain
to be an item that can be used in many social occasion by said char-based character
And so on, it could also have some 'practical use'; for example it's hard to obtain the help of nobility with money, they have plenty; but who knows; maybe they are interested in peculiar items like this one (basically using it a side-quest).

I took that as an Oekaki challenge scras!

I could see a use for this in a cyberpunk or other futureish setting to. Advanced fabric with hidden controls and fiberoptics let the wearer make any part of the dress (and why limit it to just dresses or women's attire?) transparent. Heck, it could be the hot new thing for men and women who want to show off without freezing off their good bits!

Or traumatize children on the sly.

Update: Updated with the sub with use of the dress by axlerowes and with the cyberpunk / sci-fi variant suggested by longspeak

Cheka! The Queen of Vallermoore would love this wouldn't she!

She most certainly would. :)

Are you doing a flirting dress thing with her? :)

3.5/5
Hmm, I can think of several naughty uses for this :D *grins wickedly*

A revealing little sub. Lots of uses for the idea.

The reactions to this inspired me to create something similar here: http://strolen.com/viewing/7891 without reading yours first. Credit where credit's due :)