Board Thread:General Discussion/@comment-1916997-20151012011036/@comment-24674051-20151015142700

Rumple did have Hooks Cutlass, which is also what he used to cut off Killian's Hand.

BUT! go back earlier in the episode, when Killian 'fights' the cowardly non-dark rumple. Hook has his cutlass, and he throws some rusty second-rate cutlass to Rumple, who picks it up, and then drops it before he is chased from the deck of the Jolly Roger. Then, when Dark One Rumple encounters Killian again, Rumple magics Killians sword away, and then magics the previous rusty cutlass to appear before Killian. Ignoring the any mistakes from prop department and focusing just on the story, the rusty cutlass is what Killian would have had when Milah was killed by Rumple. He never retrieved his original cutlass. Though i will concede that he probably appropriated Milah's cutlass after her death.

So, the cutlass that Emma takes from Killian, and the Killian showed to Emma for that matter, was intended to be the Rusty Cutlass that was originally thrown to Rumple in the first sword dual, not any Cutlass that Killian might have carried with him since that time. At least, that is how I interpreted the story.