You use it only while trading feebas. Sorry, but that is all i know.
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The Pokémon that the Prism Scale evolves is Feebas but it only evolves Feebas as of Pokémon Black and White.
Feebas evolves into Milotic once it's traded while it's holding the Prism Scale however Feebas only evolves with the Prism Scale as of Pokémon Black and White.
Feebas can evolve while holding a Prism Scale and traded. This applies to only Generation V and up.
The Prism Scale is for Feebas, if Feebas holds the item and is traded it will evolve to Milotic. This item was created when condition for pokemon was removed in Black and White.
The two Prism scales evolve feebas if traded, he will evolve into a milotic. But you have to trade while they are holding the prism scales or else they wont
By trading it with the prism scale
(you will need two nintendo,with two pokemon black or white either game do not matter) you go to a route near undella town(beat the game)and you can find a prism scale there,get it,open the other ds and let the feebas hold the prism scale and trade