The creature touched may make a Will save to negate the spell. Otherwise, you cause the creature (hereafter referred to as "the target") to emanate magical vibrations that cause others to view him with admiration. Others who find themselves inside the area of effect must make a Will save (or, rather, the DM secretly rolls it for them). If they do, they still view the target approvingly, but those who fail are utterly duped. Any statement the target makes that's not an obvious lie will be met with wholehearted belief. Saying "the sun is cold" doesn't cause much of a reaction, but a statement like "that man is a wizard, and he just cast some sort of spell on me" or "there aren't any orcs hiding just behind that hill" will be utterly believed.
Creatures with true sight or similar magics can detect the aura, but are still affected as if they made their save. This spell ceases to function while the target is inside a zone of truth or similar effect, but turns back on as soon as the target leaves the area. Spell resistance works to protect both the target and anyone inside the area of effect.
Note that the language-dependant and mind-affecting properties of this spell only come into play with those caught in the area of effect, and not the target.
Credible Aura counters and dispels Unbelievable Aura.
Material component: A two-pound lump of coal that's been coated in a mixture of brass and crushed diamonds originally worth 1,500 gp.