Resurrection Phial

From Fable - Wiki on Neoseeker

In Fable and Fable: The Lost Chapters, the Resurrection Phial is used to prevent Hero from dying during a quest or while out exploring. If all of the health is gone and there is no more phials, the player must restart from the last save or restart the quest if on one. In Fable II, the phial has a differing role. As the Hero has infinite health, what the phial does is prevent the Hero from scarring or losing experience.