The Medallion of Time is an Artifact of Time. It can protects the wearer against the Sands of Time's ability to transform humans into Sand Creatures when released, and can serve to manipulate the flow of time itself if the wearer is in a location where the power of the Sands of Time is concentrated.
The Sands of Time
Like the Staff and Dagger of Time, the Medallion protects humans from the Sands of Time's ability to transform living things into Sand Creatures. So long as the the Medallion is somewhere near the wearer[note 1], they are protected by its power.
In possession of the Medallion from the past, the Prince has the ability to control and absorb the Sands of Time present on the Island of Time. While not a weapon, its function is not unlike the Dagger of Time in this capacity.
The Medallion's story is never made clear in the Sands of Time Trilogy. Since it uses the powers of the Sands of Time, it can be assumed that it was created on the Island of Time probably around the same time as the Dagger and Staff.
The Sands of Time
Farah, the daughter of the Maharajah who took the Hourglass of Time and the accompanying artifacts from the Island of Time, was given the Medallion of Time years before the events of The Sands of Time.
When the Prince releases the Sands of Time using the Dagger, She is the only person from India besides the Vizier who is spared from the Sands of Time because she wears the Medallion around her neck. She appeared to be aware of its protective qualities, as when she took the Dagger of Time to reverse time, she left the Medallion with the Prince.
When time is restored and the Sands of Time returned to the Hourglass, the Prince still has Farah's Medallion, but she also wears it around her neck when he tries to convince her of the Vizier's betrayal.
When the Prince travels to the Island of Time, he wears the Medallion in the breastplate of his armour as a personal memento to Farah, but finds upon arrival at the Island that with the power of the Sands so concentrated there, he can use the Medallion to manipulate the Sands of Time and recreate the powers that were previously granted to him by the Dagger of Time. It appears able to sense the presence of Sand Creatures, as it glows as Shahdee and her warriors approach the Prince's ship to attack. In the standard ending of Warrior Within, Kaileena is killed in the present, preventing the Sands of Time from existing in the past, and therefore preventing the past version of the Prince from having opened the Sands. With this done, the Dahaka no longer wishes the Prince's death, but instead erases the Medallion of Time from existence, as without the Sands, it should never have existed in the first place. In the best ending, Kaileena instead survives, and the Prince uses the power of the Water Sword to slay the Dahaka, allowing him to keep the Medallion.
The Two Thrones
In The Two Thrones, which treats the best ending of Warrior Within as canon, the Prince discards the Medallion as his ship approaches Babylon, dropping it into the sea, as a means of trying to let go of his love for Farah and look to his future with Kaileena. The Vizier later mentions finding the Dagger, the Staff and the empty Hourglass on the Island, but makes no mention of the Medallion.
When the Prince reunites with Farah, she is no longer wearing her original Medallion, at least not above her clothes. Since the Vizier has direct control over the Sands of Time, the Sands are not transforming every single person they come across into sand monsters, and, like much of the populace of Babylone, Farah remains human. What exactly happened to the original Medallion in this timeline is never revealed.
Throughout the Warrior Within, the Medallion replaces the Dagger of Time as the Prince's primary weapon against Kaileena's army of Sand Creatures on the Island of Time. The player is able to gain Life Upgrades using Upgrade Pedestals, which are located in the past segments of the game.
In addition, the Medallion functions much like the Dagger of Time. The player will acquire several several powers, which are unlocked whenever the Prince uses a newly activated Time Portal. The Medallion also has the ability to make the carrier more resistant to damage, by expanding the in-game health meter, but it must be first put in one of nine life upgrades located on the Island of Time. It can sometimes make new sand tanks, out of six maximum slots, when using new time portals.
- ↑ The Prince is not wearing the Medallion when he wakes up from the "dream" with Farah. The Medallion is lying on a altar across from him.