Much of Final Fantasy XVI's plot intentionally makes the narrative confusing (thank you, Clive, for being our unreliable narrator), and the identity of “Margrace” is one of them. Margrace is first introduced as a hooded figure that gets captured by Benedikta and her men, later becoming a figure that would haunt Clive many chapters after. So, who is he? Is he just a figment of Clive's imagination?
Warning: There are HUGE story spoilers beyond this point. You’ve been warned!
Who is Margrace in Final Fantasy 16?
Margrace’s true identity is Joshua Rosfield, Clive’s younger brother. I admit, I didn’t believe it myself (even when he removed the hood) until he truly made his “appearance” mid-game, but he is Joshua.
Though he’ll only catch a glimpse of him, Clive is aware to some extent that his brother lives. He keeps one of Phoenix’s feathers with him after the second time skip.
Joshua’s “death” at Phoenix Gate
As mentioned, Joshua didn’t die at Phoenix Gate. Most of us thought he certainly was, but that’s just because Clive is such a horrible narrator. In Joshua’s confrontation against Ultima near the Mothercrystal, he even accuses the creature of “separating” him and his brother. You heard it right; Clive was gaslit by the plot to believe that That Night’s events were true, and the players, by extension.
By the way, we also talked about the possibility of Joshua not dying before. He’s the Dominant of Phoenix, a creature that literally pulls a Revive after it’s been defeated by the Eikon of Fire. How could Joshua be dead now when Hellfire didn’t kill him? Clive also falls back into unconsciousness before he can see the conclusion of that fight.
For more help with Final Fantasy XVI, take a look at Best Weapons in Final Fantasy 16 and how to get them and Final Fantasy 16 Photo Mode Guide here at Pro Game Guides.