Danio margaritatus bodies in the Inle drainage, the water is slightly alkaline. The habitat is heavily vegetated with Hydrocharitaceae similar to "Elodea" (water weed). The celestial pearl danio shares its habitat with a very few fish species: a "Microrasbora" similar to "M. rubescens", a rosy loach ("Yunnanilus", possibly a new species, and the dwarf snakehead "Channa harcourtbutleri". The latter species presumably is the only known significant predator of "D. margaritatus". The species is locally fished for food to some extent; it is dried and bought as a protein source by poor people. A can of some 500 "D. margaritatus" sold for food
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