I used it on Shadowheart and then have her talk to goblin guards - works like a charm!
Good tip ! Making use of Shadowheart's strength. Can't wait to try it. If I can, I will make my entire party disguised. :P (i.e. with scrolls)
EDIT: sadly there is no goblinoid disguise in the options (for height, I am thinking orc, gnoll, bugbear). I play Drow, so no need there.