The Villager, also known as the Peasant, is an unarmed subject of your kingdom which has not yet been assigned a role. Villagers can be acquired by recruiting vagrants, which is done by tossing a coin to the vagrant that you wish to recruit. Once recruited, the new villager will return to your kingdom and remain idle, wandering aimlessly, until you have assigned them a job. Villagers can be assigned to become either an archer, builder, farmer, or knight if they pick up any of the corresponding tools from the respective bow, hammer, or scythe racks, or in the case of the knight, one of the shields hanging on the side of your castle. The villager's clothing of choice appears to be a onesie without a hood, which comes in primarily brown or gray coloration.
Villagers are one of the most crucial elements of the game, for without a villager, you cannot gain archers, builders, or farmers. Regularly visit camps nearby to recruit vagrants and gain more villagers, and don't worry if you can't assign them a role right away. Once they are recruited, they will stay within the kingdom's walls indefinitely, unless they are attacked by an enemy. Avoid recruiting villagers from camps that are farther away, or do so when it is very early in the morning to give them time to enter your kingdom before nightfall.
When attacked, villagers will revert back into vagrant and drop the gold coin that you originally gave them.