The Collaborative International Dictionary of English v.0.48:

Beatify \Be*at"i*fy\ (b[-e]*[a^]t"[i^]*f[imac]), v. t. [imp. &
   p. p. Beatified (b[-e]*[a^]t"[i^]*f[imac]d); p. pr. & vb.
   n. Beatifying.] [L. beatificare; beatus happy (fr. beare to
   bless, akin to bonus good) + facere to make: cf. F.
   b['e]atifier. See Bounty.]
   1. To pronounce or regard as happy, or supremely blessed, or
      as conferring happiness.
      [1913 Webster]

            The common conceits and phrases that beatify wealth.
                                                  --Barrow.
      [1913 Webster]

   2. To make happy; to bless with the completion of celestial
      enjoyment. "Beatified spirits." --Dryden.
      [1913 Webster]

   3. (R. C. Ch.) To ascertain and declare, by a public process
      and decree, that a deceased person is one of "the
      blessed," and is to be reverenced as such, though not
      canonized.
      [1913 Webster]

WordNet (r) 3.0 (2006):

beatify
    v 1: fill with sublime emotion; "The children were thrilled at
         the prospect of going to the movies"; "He was inebriated by
         his phenomenal success" [syn: exhilarate, tickle pink,
         inebriate, thrill, exalt, beatify]
    2: make blessedly happy
    3: declare (a dead person) to be blessed; the first step of
       achieving sainthood; "On Sunday, the martyr will be beatified
       by the Vatican"

Moby Thesaurus II by Grady Ward, 1.0:

35 Moby Thesaurus words for "beatify":
   aggrandize, apotheose, apotheosize, bless, canonize, cheer,
   cleanse, consecrate, crown, dedicate, deify, devote, elevate,
   ennoble, enshrine, enthrone, exalt, gladden, glamorize, glorify,
   hallow, happify, immortalize, lionize, magnify, make happy,
   make legendary, purify, raise, saint, sanctify, set apart, set up,
   throne, uplift