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
Danio margaritatus with a markedly blunt snout, measuring just 2–2.5 cm standard length. The body is about three times as long as it is high. In general shape, it resembles "Danio erythromicron" more than any other known species. This species shows some sexual dimorphism: males have a bright-blue background color (dull blue-green in females), and their fins are more brightly colored. The tail end of their bodies (the caudal peduncle) is also higher than in females. The body is sprinkled with small, pearly dots. The back is bronzy green, and the belly in females is yellowish-white. The gill covers are transparent, letting