I've been in lots of big battles and he doesn't seem like he can die. Easily lost two horses before him but had Shadowmere forever and he just never dies!
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I do not know how accurate this information is (see link below), but I believe Shadowmere can die, but he respawns alive or something.
He does have a lot of health, though, and regenerates fast, so he is much better than a normal horse.
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thanks david! makes sense cause I've accidentally jumped off a mountain and killed him but wasn't sure if he could die from combat damage. That link info seems accurate to me
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