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Celesteville is the capital city of Babar's kingdom in Elephantland. It houses Babar's palace and living quarters on a hilltop. It is arguably the only major city in the kingdom, as the rest of Elephantland appears to be deserted jungle. Celesteville has a large population of mostly elephants, but also has a significant number of animal minorities as well - namely hippos, rhinos, monkeys, zebras, and giraffes. This diverse society contradicts that of Rhinoland, where rhinos almost completely make up the general populace. In the series, Celesteville is praised as a peaceful, tolerant, and welcoming society in which all animals in the kingdom can live a fulfilling and luxurious life.

Celesteville consists of a mainly tropical climate, as the presence of palm trees and fertile soil indicates. Weather is humid and warm most of the year, however temperatures rarely reach to the high levels felt in Rhinoland. There has been no recorded snowfall in Celesteville, however it has been shown that at times it can get quite chilly, especially during the night. Babar's palace dorm provides a complete view of the city. There is often a very drastic and noticeable difference when one leaves the city into the jungle, suggesting that Celesteville has strictly defined borders and anyone from a further location is considered an outsider.

Celesteville is technologically and culturally developed. Residents live in well-constructed houses that are lined up around the city's exterior boundaries, while the center consists of mostly cafes, restaurants, malt shops, and the occasional skyscraper. Streets are made of hardened cement and traffic control services are effective at their jobs. Crime does not appear to pose a substantial threat to the city, although it does have a prison (as seen in Object D'Arthur). Celesteville appears to be well known among many animal kingdoms, as there have been a multitude of associates that have dealt with Babar from their respective kingdoms.

Celesteville is progressively oriented and holds relatively liberal attitudes for the people. It prides itself on inclusion and also guarantees core values such as freedom of expression, opinion, the press, and the right to a fair justice system. Corruption does not pose a serious threat in the city, however it has been encountered subtly on a few occasions throughout the show. Celesteville is portrayed as a utopia in the Babar universe, and rightly so. Its modernity allows it to prosper as a beacon for hope and success. Celesteville became the first step for Westernization of the elephant kingdom.

The city is named after Babar's wife, Celeste. However, he named the city Celesteville long before they were married. Out of competition for a civilized society against Rataxes and his kingdom, Babar considered it a model for his revenge against the Hunter who had previously killed his mother. As the animals developed further, they eventually managed to scare away the Hunter from their jungle. As such, Celesteville acts as the main setting for the show.