Yes! It will return characters back to the state they were before the fatal wound. Any physical scars/injuries your character had before you wish to keep, you may, but it is an extremely potent form of magic: it can heal long-term wounds as well. (Totally up to the player OOC how far it goes. For an IC reason why it may or may not heal old injuries, inconsistent storage messed with the potency. Like the difference between ice cream next to the door light in the grocery store freezer and at the back. One's a little crustier sometimes.)