The Magic Pencil is one of the items used in Infiltrating The Airship. You see it in the PBT ending.

In the game Edit

When Henry uses the magic pencil, He draws what looks like a glider but it then comes to life, and uses it's pointy edge to whack Henry in the crotch, and it flies away while Henry collapses in pain.

Fail Screen Edit

Why did you draw a "Nutshot Crawler"?