It claim to be able to light the Tomb of the Giants but it does nothing. Do I have to reach a certain point here or am I just missing something?

Put it in your left hand and hit LB/L1, your character will hold it out and it will place glowing beacons on the walls in the distance.

Thank you. I thought I tried both hands. Guess not. Silly me.

The Skull Lantern also had me scratching my head. I made it through Tomb of the Giant without it. It wasn't until later in the game when I equipped it in my left hand and I was like "ohhh".

@Aishan said:

it will place glowing beacons on the walls in the distance.

Oh, I thought that was just my game bugging out. Speaking of which, does everyone get the 'Installing Trophy Data' message with each start up?

@EVO: Yeah I get that too. Weird, but it only takes like 5 seconds.

Personally, I prefer to forgo the lantern and use cast light instead so that I can still use a shield.

Pro-Tip: Go to the Demon Ruins and pick up the Sunlight Maggot head gear. Made my life easier when I found it. Really. Plus you can trade the skull lantern for something spiffy with Snuggly the crow (the Forest Covenant's Ring I think).