Creation of All Things Technique

The Creation of All Things Technique was a technique possessed by Hagoromo Ōtsutsuki that allowed him to turn fantasy into reality. The process he used is explained to have initially involved the administration of imagination, and the spiritual energy which forms the basis of Yin chakra to create physical forms from nothingness. Then, through the application of vitality, and the physical energy which forms the basis of Yang chakra, he would breathe life into the resulting creations. The tailed beasts were created from the Ten-Tails' chakra with this technique.

In the anime, when using this ability, the beings created are minuscule and surrounded by a magatama-like green energy pod.

Trivia

 * It is said that Izanagi is simply a practical application of this technique.
 * According to Obito Uchiha, the Sage of the Six Paths used this ability to create many things besides the tailed beasts.
 * During his fight with Naruto Uzumaki, Sasuke Uchiha merged all of the tailed beasts' chakra using Susanoo as a vessel. Kurama described this act as being on par with Hagoromo's creation of the tailed beasts, except in reverse.