The Undead are beings brought back from the dead or summoned from the Underworld to serve in unlife. Undead creatures range from chaff such as Ghouls (zombies) and Longdead (skeletons), which can be summoned en masse to smother the battlefield, to powerful, immortal mages like Liches and Wraith Lords who can resurrect their own armies of undead.
Being undead is typically associated with a number of other characteristics:
Undead creatures may become diseased, but they do not suffer any adverse affects from this and cannot become afflicted from disease. However, they also cannot have any afflictions they gain from battle healed by the Healer ability. The equivalent ability that works on undead is Corpse Stitcher, a fairly rare trait that is unique to the mages of LA Agartha and a few other independent mages.1)
Many undead creatures, such as Longdead, are also inanimate; in these cases, they cannot benefit from ordinary regeneration such as from the bless of the same name or Mass Regeneration. However, the bless Reforming Flesh is regeneration that works on all undead, including inanimate ones.2)
Several spells target undead specifically. For example, priests can use the Banishment spells to harm them. Some Nature and Death spells also target the undead, such as The Ravenous Swarm and Control the Dead, making this tag a weakness in some circumstances. However, being undead also synergizes with other spells like Rigor Mortis.3)
Undead can only be led by commanders with Undead Leadership. Undead are considered separate from regular units (and from magic beings), so a commander with 100 Leadership and 50 Undead Leadership can lead 100 ordinary troops and 50 undead simultaneously. Non-mindless undead can be combined into squads with regular units, but cause a -1 Morale penalty for the regular units. 4)
Undead and demons share the need for undead leadership, but are otherwise distinct categories of creatures.