As with other magical bags, this one appears to be a common cloth bag of about 2' by 4' size. Its inside, however, is larger than its outside.
If the bag is overloaded, or if sharp objects pierce it (from
inside or outside), the bag ruptures and is ruined. All contents are
lost forever. If a bag of holding is turned inside out, its contents
spill out, unharmed, but the bag must be put right before it can be
used again. If living creatures are placed within the bag, they can
survive for up to 10 minutes, after which time they suffocate.
If a bag of holding is placed within a Portable hole a rift to the
Astral Plane is torn in the space: bag and hole alike are sucked into
the void and forever lost. If a portable hole is placed within a bag of
holding, it opens a gate to the Astral Plane: The hole, the bag, and
any creatures within a 10-foot radius are drawn there, destroying the
portable hole and bag of holding in the process. If a Dimensional mine is placed inside a bag of holding, everything in the bag, including the mine
itself, is spewed into the Astral Plane and is lost unless someone can
retrieve it. The bag of holding is destroyed. These catastrophic events do not occur in Sigil, where planar travel apart from the city's Portals is impossible.
Similar items include the Heward's handy haversack (DMG 3e) and the belt of many pouches (Complete Arcane 3e). There is also a creature similar to a bag of holding called bag of devouring (DMG 3e - cursed items)
See also Dhour.
Sources: Dungeon Master's Guide (2e and 3e), d20 SRD
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