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shroud (n.)

Old English scrud "a garment, clothing, dress," from West Germanic *skruthan, from Proto-Germanic *skrud- "cut" (source also of Old Norse skruð "shrouds of a ship, tackle, gear; furniture of a church," Danish, Swedish skrud "dress, attire"), from PIE *skreu- "to cut" (see shred (n.)).

Specific meaning "winding-sheet, cloth or sheet for burial," to which the word now is restricted, first attested 1560s. Sense of "strong rope supporting the mast of a ship" (mid-15c.) is from the notion of "clothing" a spar or mast; one without rigging was said to be naked.

shroud (v.)

c. 1300, "to clothe, to cover, protect," from Old English scrydan, scridan "to clothe, dress;" see shroud (n.). Meaning "to hide from view, conceal" (transitive) is attested from early 15c. Related: Shrouded; shrouding.

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Definitions of shroud from WordNet
1
shroud (v.)
cover as if with a shroud;
The origins of this civilization are shrouded in mystery
Synonyms: enshroud / hide / cover
shroud (v.)
form a cover like a shroud;
Mist shrouded the castle
shroud (v.)
wrap in a shroud;
shroud the corpses
2
shroud (n.)
a line that suspends the harness from the canopy of a parachute;
shroud (n.)
(nautical) a line (rope or chain) that regulates the angle at which a sail is set in relation to the wind;
Synonyms: sheet / tack / mainsheet / weather sheet
shroud (n.)
burial garment in which a corpse is wrapped;
Synonyms: pall / cerement / winding-sheet / winding-clothes
From wordnet.princeton.edu