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Angelic Shard was a Legendary Crafting Material in Diablo III before patch 2.0.6. It requires a Character Level of 1 to use, is account bound, and may be stacked up to 1000 times. It was required for the crafting of each piece of the Hallowed Protectors set. As of patch 2.0.6., it no longer drops, and existing Shards may be sold for 50,000 gold each.

The item had a chance to drop off the unique Angels, Exarchs, Anarchs and Corrupted Angels:

Borne by natives of the High Heavens... even those who have fallen from grace.

Diablo III Crafting Materials

Regular Salvaged and Dropped Materials