Spatiotemporal patterns in multicellular systems are important to understanding tissue dynamics, for instance, during embryonic development and disease. Here, we use a multiphase field model to study numerically the behavior of a near-confluent monolayer of deformable cells with intercellular friction. Varying friction and cell motility drives a solid–liquid transition, and near the transition boundary, we find the emergence of local nematic order of cell deformation driven by shear-aligning cellular flows. Intercellular friction contributes to the monolayer’s viscosity, which significantly increases the spatial correlation in the flow and, concomitantly, the extent of nematic order. We also show that local hexatic and nematic order are tightly coupled and propose a mechanical-geometric model for the colocalization of + 1 / 2 nematic defects and 5–7 disclination pairs, which are the structural defects in the hexatic phase. Such topological defects coincide with regions of high cell–cell overlap, suggesting that they may mediate cellular extrusion from the monolayer, as found experimentally. Our results delineate a mechanical basis for the recent observation of nematic and hexatic order in multicellular collectives in experiments and simulations and pinpoint a generic pathway to couple topological and physical effects in these systems. The collective migration of cells within a biological tissue plays a fundamental role in physiological and pathological processes such as embryogenesis ( 1), wound healing ( 2), and cancer progression ( 3, 4). A long-standing challenge is to dissect the molecular mechanisms driving such coordinated motion—from a biophysical standpoint, one aims to understand how the mechanical properties of individual cells and the forces acting upon them give rise to the emergent phenomena seen at the tissue scale ( 5).