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Chapter 8: Playing the Game / Perception and Detection / Detecting Creatures

Observed

Source Player Core pg. 434
In most circumstances, you can sense creatures without difficulty and target them normally. Creatures in this state are observed. Observing requires a precise sense, which for most creatures means sight. If you can’t observe the creature, it’s either hidden, undetected, or unnoticed, and you’ll need to factor in the targeting restrictions. Even if a creature is observed, it might still be concealed.