The Collaborative International Dictionary of English v.0.48:

Engrailment \En*grail"ment\, n.
   1. The ring of dots round the edge of a medal, etc. --Brande
      & C.
      [1913 Webster]

   2. (Her.) Indentation in curved lines, as of a line of
      division or the edge of an ordinary.
      [1913 Webster]