This is interesting, I would like to see a sequel to get a better idea of what is going on. Were they ghosts? Is this a vision? Interesting stuff here well done.
Lovely description. I thought it read as though this person had won the battle but lost their life, with this being a description of their transition to the afterlife. Worked for me.
I think it should be “underwater palaces”, unless you mean they walked beneath palaces somehow associated with water.