Magic sword

Magic swords are specially enchanted blades which have been enchanted to strengthen their effect in combat, giving them a slight edge over mundane weaponry. Such artifacts appear in Ultima III, Ultima VII, Ultima Underworld II and Ultima VII Part Two, although more specialized varieties of magical blades may be found throughout the series.

History
The classical enchanted sword seen prominently throughout the early Age of Armageddon looked much like its non-magical counterpart, save that it glowed with a pale blue light, much like enchanted armour. While such swords were nigh impossible to find among the wares of weaponsmiths, a canny adventurer could collect such blades should they have a knack for treasure hunting, and numerous magical swords could be found in the midst of dungeons or remote areas.

The Ultima VII Part Two clue book lists magic swords as having a damage of 7 and a reach of 2.

+2 and +4 Swords
In archaic Sosaria, during Ultima III, specially enhanced swords could be procured from the mystic city of Dawn, where the weaponsmith offered a "+2 sword" (or Iron Sword in the  NES Port)  and "+4 sword" (or Sun Sword  in the  NES Port).

Fire Sword
Fire swords are magical blades which have been imbued with the properties of flame, such as that they always appear to be burning. In addition to delivering additional damage through their searing heat, such swords may also serve as torches in darkened areas.

Sword of Defense
Swords of Defense serve are enchanted such that those who wield them are protected as though they are wearing a a full suit of Plate Armour, making them valuable resources for fighters not able to obtain or carry such heavy gear.

Glass Sword
Glass swords are specially prepared crystalline blades that shatter on impact, doing incredible amounts of damage that are normally sufficient to slay those they hit with a single blow.

Other Magical Swords
A number of unique magical swords have been created throughout the ages on a number of worlds, each with its own special powers and properties. Some notable magical blades that have appeared in the Ultima series include Enilno, the quicksword; the cursed  Chaos Blade; the paralyzing Sword of Stone Strike; the Magebane; the daemon possessed Black Sword; and the liche-born Gringolet.

Ultima III
Magic swords may be found at the following locations in Ultima III:
 * Dawn (+2 and +4 sword sold at the weaponsmith for 800gp; 4550gp)

Ultima VII
Magic swords may be found at the following locations in Ultima VII:
 * Ambrosia, Pirate's Camp at 77N, 196E.
 * Despise, Invisible Chest at 5N/23E.
 * Isle of the Avatar, Dragon's Treasure at 161S/191E.
 * Selwyn's Hideout/Dungeon Shame, Paladin.
 * Serpent's Hold, Armoury at 157S, 53E.
 * Shame at 95S, 24W.
 * Wrong, In a chest at 38N/38E.

Ultima Underworld II
Magic swords may be found at the following locations in Ultima Underworld II:
 * Castle Britannia, (a sword of Major Damage can be found at the southwest area of level four, near a Reaper)
 * Killorn Keep, (a Longsword of Major Accuracy can be found at the oubliette in the basement)

Ultima VII Part Two
Magic swords may be found at the following locations in Ultima VII Part Two:
 * Inn of the Sleeping Bull, invisible chest atop monolith at 100S, 39E.
 * Moonshade, Artisan's Bazzar.
 * Moonshade, in possession of Julia.
 * Moonshade, in the treasure room of the Palace of the MageLord.