Kaguyahime appears as a girl adorned with distinctive rabbit ears, which she asserts link to a lunar curse affecting those who touch them. She frequently employs a name rooted in Japanese folklore and invokes phrases implying celestial authority, like declaring actions "on behalf of the Moon," while her true status as a goddess stays undefined. Her outwardly cute demeanor sharply contrasts with her penchant for engaging in pranks and deception.

Her background traces back to arriving at a shrine and instigating a conflict over its ownership, sparking a notably intense rivalry with another character, Ichihime. This ongoing contention significantly shapes her interactions. Her character draws inspiration from the ancient Japanese folktale *The Tale of the Bamboo Cutter*, incorporating elements like her lunar association, the rabbit ears (referencing the Moon rabbit of East Asian folklore), and her self-proclaimed title mirroring Princess Kaguya, the celestial being found in a bamboo stalk who returns to the Moon.