Matali is located off the coast of India. It is the realm nearest to Miromara, and the two realms are good allies. It started of as a small Seychelles town and expanded to become a great Mer realm. It was founded by Merrow.
The rulers at the beginning of Deep Blue were Empress Ahadi and Emperor Bilaal, Mahdi's parents, but they were killed by Traho's troops. The leadership was passed down to Neela's parents, until it was taken over by Portia Volnero and Traho's army. Currently (as of the end of Rogue Wave) it is still in the possession of Traho.
The flag of Matali is blue, with a depiction of a razormouth dragon. The dragon is holding a silvery-blue egg, which upon further examination was assumed to be Navi's moonstone talisman.