The ancient artifact was discovered near a graveyard where about 30 people were buried without their heads.
The bone wand was probably carved from the rib of an auroch, the wild ancestor of cows, and is about 12 centimetres long, researchers said.
The wand, which was likely used in a funeral ritual, is one of the only naturalistic depictions of human faces from this time and place, said Frank Braemer, an archaeologist at the Centre National de la Recherche Scientifique in France.
"The find is very unusual. It's unique," Braemer told LiveScience.
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After the skeletons and wand were buried, someone seems to have dug up and removed the skulls, placing them in the inhabited portion of the settlement.
The bone wand contains two natural-looking faces, with eyes closed, carved it, and it was intentionally broken at both ends, with more faces likely originally adorning the staff.
The wand's purpose and symbolism remain a mystery.
The study is published in the journal Antiquity.