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Celestials are beings who lived in the Celestial Plain. They were forced to leave their home behind when it was attacked by Orochi. Presumably all Celestials got killed by the monsters lurking inside Ark of Yamato which they used to flee Celestial Plain.
Celestials are angel-like beings, with white wings on the sides of their heads and white robes. Some are shown to wear golden bracelets and anklets in the game. The players encounters few Celestials in the Ark of Yamato. One of them is the merchant who will trade items for money and Demon Fangs.