IC1396 - the Elephant's Trunk Nebula, is a large HII emission nebula, about 2,400 light-years away in the constellation of Cepheus.
Strictly speaking the 'Elephant Trunk' name applies to the concentration of dust and gas which can be seen near the bottom of the picture. This is 'cometary globule' caused by stellar wind from the star 'HD206267'. The star is also responsible for the relatively clear central portion of the nebula, where the dust and gas have been blown out radially.
The nebula is thought to be a site of star formation containing several very young stars less than 100,000 years old.
For more info. see the Wikipedia entry.
Click here for a stunning SHO Palette image by James Clark.