The Divine Sword is the last sword the player is likely to obtain before journeying to the first new dimension, the Dravite Hills. It is slightly more powerful than the Ender Sword. It is crafted with Divine Stones, which can be crafted from materials obtained from the early bosses: The Watcher and The Ancient Entity. It can be traded for an Icine Sword if you have 40 Snowflakes.
The Divine Sword is a useful weapon for the upcoming dimension, the Dravite Hills, and even the consequent Azurite Forest, considering how overpowering it is in the Overworld. As it deals 29 points of damage (14.5 hearts), it will instantly kill almost all vanilla mobs, excluding Iron Golems, Endermen, and the boss mobs.