Infinite Tsukuyomi

The is a technique which is the key to the Eye of the Moon Plan.

Description
The user creates an empty dimension under their control, which can then be filled with the contents of their desire, using the power of the Ten-Tails to do so. While physically tethered and connected to the Demonic Statue of the Outer Path, Madara was able to cast a similar genjutsu, albeit on a smaller scale, using only a standard Sharingan. After doing so, Madara could manipulate the otherwise blank and white world to create anything he wanted, no matter how detailed.

To trap every living being in the world within this genjutsu, however, Kaguya's Rinne Sharingan must be reflected off of the moon's surface. In order to do this, with the exception of Kaguya who ate the Shinju's chakra fruit, one must first become the Ten-Tails' jinchūriki. The genjutsu can be cast using the eye that blooms at the top of the Ten-Tails' tree form or the third eye which opens on the jinchūriki's forehead.

Upon the technique's activation, the light from the moon's eye illuminates the entire planet, turning it bright as day and making it impossible to escape. All living things are bathed in its penetrating light and immediately placed under the genjutsu. This causes a reflection of the Rinnegan to appear in their eyes as they are rendered immobile, though their cognitive abilities remain unimpaired. The user can then use the God: Nativity of a World of Trees technique to ensnare the targets, assimilating their life force with that of the Shinju. Once this is done, the person is locked in a permanent genjutsu, in which they experience a dream world based on their individual desires, yet will live forever due to the tree's power. Those tethered to the Shinju will eventually be drained of everything they once were and reduced to a shell of their former selves, ultimately becoming White Zetsu — ideal soldiers for Kaguya.

Countering
Despite the seemingly inescapable nature of this technique, the Infinite Tsukuyomi can be countered through specific means:
 * The user's Rinne Sharingan only reflects off of the moon for a limited period of time after the technique has been activated, allowing those who avoid its light to avoid being trapped within the genjutsu. Using his Rinnegan, Sasuke Uchiha was able to shield himself and his team by covering them with his Susanoo.
 * Believing that this genjutsu was cast using a Rinnegan, Sasuke hypothesised that it can be countered by another Rinnegan. Hagoromo Ōtsutsuki confirmed this, but revealed that the chakra of the nine tailed beasts was also required.

Immunity
Certain individuals are unaffected by the Infinite Tsukuyomi, despite being exposed to its light:
 * Shinobi reincarnated via Summoning: Impure World Reincarnation are not affected by this technique.
 * Black Zetsu is unaffected by the technique, as is anyone he is attached to at the time — namely Obito Uchiha.
 * Those with no brain or sensory organs, like Guruguru.

Known Dreams
After being trapped in this illusion, several characters' dreams were shown:
 * Hinata Hyūga: Being a couple with Naruto Uzumaki while Neji and Hanabi look on.
 * Kiba Inuzuka: Being Hokage and declaring a national holiday for dogs.
 * Shino Aburame: Discovering and taming a gigantic new insect species.
 * Chōji Akimichi: A girlfriend who loves him for his weight, providing a lot of food.
 * Shikamaru Nara: Seeing both his father and teacher with their significant others, while also declaring to Temari he won't even bother getting married.
 * Ino Yamanaka: Sasuke and Sai fighting over her love.
 * Rock Lee: Successfully defeating both Naruto and Neji and gaining the love of Sakura Haruno.
 * Tenten: Rock Lee and Might Guy acting maturely, while talking to Neji about it.
 * Mei Terumī: Getting married, with the other four Kage in attendance.
 * Tsunade: Dan Katō as Hokage, reunited with the other Sannin and Nawaki.
 * Gaara: A happy childhood with his entire family and Naruto as his close friend.

Limited Tsukuyomi
In Road to Ninja: Naruto the Movie, Obito casts a trial version of the Infinite Tsukuyomi, the, on Naruto and Sakura, which provides the alternate reality setting of the movie. Instead of casting it off of the moon, he instead used a crystal ball to serve as a medium to cast and host the alternate world.

Trivia

 * In Road to Ninja: Naruto the Movie, when Obito uses the Limited Tsukuyomi and the reflected eye of the Ten-Tails appears, it has seven tomoe, representing the number of tailed beasts that Akatsuki had captured at that time.