Kaguya Ōtsutsuki

Princess is the progenitor of chakra, and was able to first make use of it after consuming the fruit of the Shinju.

Background
Long ago before the founding of the hidden villages, during an era of endless wars between mankind, Kaguya — who came from a far away land — decided that it was necessary for someone to attain god-like powers in order to stop the constant conflicts. For this reason, she consumed the forbidden fruit of the Shinju, gaining the ability to manipulate powerful chakra and allowing her to single-handedly put an end to all the wars that plagued the lands. Some time after this Kaguya gave birth to two sons, named Hagoromo and Hamura. Both of them inherited dōjutsu from her, along her powerful chakra and were able to manipulate it. Angered at the power gained by her children, Kaguya manifested an incarnation of the Shinju that would become known as the "Ten-Tails", intent on reclaiming her chakra.

The Ten-Tails rampaged throughout the lands until Kaguya's sons defeated and sealed the beast away along with Kaguya herself. Hagoromo would later teach humanity the concepts of chakra, becoming revered as the Sage of the Six Paths, in an attempt to make people use chakra to connect to each other, rather than using it as a weapon as Kaguya had done.

It is said Kaguya once used the Infinite Tsukuyomi to force mankind to stop fighting, which resulted in her victims' conversion into many White Zetsu. At one point Kaguya met her two grandsons. At some point her sons sealed her away, but her will remained in Black Zetsu, who was "born" shortly before being sealed. Black Zetsu then made it his goal to revive her, via manipulation of Hagoromo's oldest son Indra and his descendants the Uchiha clan along with Hagoromo's younger son Asura and his descendants the Senju clan. He spent hundreds, possibly thousands, of years trying to get one of Indra's descendants and reincarnations to awaken the Rinnegan, eventually succeeding with Madara Uchiha, and began secretly manipulating events to have Kaguya revived.

Personality
After she obtained the ability to manipulate powerful chakra from the Shinju's Chakra Fruit, Kaguya developed both a god-complex and messiah-complex, believing that chakra rightfully belongs to her alone and that only she can protect and unite the world. Despite her desire for peace like her sons and grandsons, Kaguya opted for a more forceful method, using her great and terrible power to make everyone submit to her will. As Hagoromo noted, humanity around that time began to fear her as a demon for her horrific methods.

However, Kaguya also displays some sort of mother-like traits, as she appears to care very deeply about the earth, viewing it as a nursery and didn't want to damage it any further. Although she openly stated that she hated her children for their ability to wield chakra and created the Ten-Tails to get it back by force, Kaguya wept upon seeing her sons in Naruto and Sasuke.

Appearance
A woman in possession of very delicate facial features, Kaguya also had an extremely long, sweeping light coloured hair that touched the ground. Most noticeable were two horn like protrusions which stuck out from her head — appendages inherited by both her sons. Kaguya possessed the Byakugan, and also had a third eye on the centre of her forehead that's eyelids parted vertically. Her eyebrows were cut very short — a symbol of nobility, and she wore a dark shade of lipstick on her lips and a dark shade of nail polish on her long fingernails. She wore the transitional high-collared hime-kimono which was adorned with intricate lines and tomoe running down the centre and edges of the gown.

Abilities
After consuming the fruit of the Shinju, Kaguya achieved such unrivalled power that she was able to pacify the war-torn world all by herself, leading the people to worship her in fear. Hagoromo, being a legendary figure himself, praised his mother's might as superior to all others, including his own. In one portrayal of her, Kaguya was shown manipulating lightning, causing a thunder storm. She was also able to manifest her will, creating life to meet her own ends. Initially, she created the Shinju in order to reclaim the chakra her two sons had inherited. Just prior to her death, Kaguya was able to create Black Zetsu, using the latter to restore her body.

Upon her revival, she was able to instantaneously teleport herself and others around her to a different dimension, while simultaneously erasing the presence of their chakra. Similarly, Kaguya is able to open and travel through rifts in space as a means of instantaneous travel. Her movements have also shown to be extremely fast as she is capable of suddenly appearing before individuals in the blink of an eye. She can also use her extremely long hair as a makeshift weapon capturing and tossing foes around the battlefield or shooting it like senbon with enough ferocity to pierce even Sasuke's Susanoo. Like other Shinju jinchūriki, Kaguya displayed the ability to fly. In combat, she is able to materialise enormous chakra fists, easily surpassing the power of Naruto's Tailed Beast Chakra Arms. She's also able to deflect and destroy a full power Perfect Susanoo without much effort.

Dōjutsu
Kaguya possesses all three of the : a combination of the Byakugan, Sharingan, and Rinnegan. Using these dōjutsu, she was able to quell the fighting in her era and was even said to have used Infinite Tsukuyomi.

Byakugan
Kaguya wields the Byakugan in both eyes, granting her near 360° vision (with the exception of a small blind spot at the upper thoracic vertebrae), x-ray vision and the ability to see the chakra pathway system. Her sight with the Byakugan was also able to bypass the defence of Susanoo. In conjunction with her hair, Kaguya was able to see the individuals' vital points, accurately piercing them in order to immobilise them completely.

Sharingan and Rinnegan
Kaguya wields her Rinnegan and Sharingan together as a third eye on her forehead in the form of the Shinju's eye. As a Sharingan, it presumably grants her its basic abilities such as seeing the flow of chakra, the ability to easily recognise genjutsu and different forms of chakra, heightened powers of perception as well as the ability to copy techniques that she saw, amongst other things. The capabilities of her Rinnegan are unknown.

Chakra
According to Naruto Uzumaki, the chakra possessed by Kaguya amounts to more than even the Ten-Tails itself. Shortly thereafter, Sasuke claims that her chakra is on an entirely different level from Madara's, his own and Naruto's, while also wondering to himself how someone so powerful could exist. Black Zetsu later claimed that Kaguya, rather than the Ten-Tails, is, in fact, the progenitor of all chakra.

Infinite Tsukuyomi Arc
After the Infinite Tsukuyomi was finally cast by Madara Uchiha, the man attempted to finally tie up loose ends by eliminating Naruto Uzumaki, Sasuke Uchiha, Kakashi Hatake and Sakura Haruno. When he proclaimed himself as the saviour of the world, Black Zetsu, who had been standing behind Madara prior, impaled the elder Uchiha on his hand, stating that his will was of Kaguya before expanding and moving his body over Madara's own. Madara then began to scream as the influence of Black Zetsu spread over him, before chakra began to swirl through the air towards him and be absorbed by him, swelling him up to a size multiple times greater than before.

As Sasuke and Naruto attempted to intervene, they were captured by hair-like appendages while Madara continued to grow. He eventually stopped growing, actually shrinking down to a similar size that he was originally, but Madara was no longer there, as Kaguya had taken his place. She looked on at the surroundings, noticing Naruto and Sasuke and, more important, the marks on their hands before the hair-like appendages, now made up of her actual hair, threw them back to the ground. She activated her Byakugan, noticing that the two youths had similar chakra to her sons and Hagoromo's children, before coming to the conclusion that Hagoromo had bestowed the powers to them. Kakashi asked her about her motives, and she stated that the world was her nursery and wanted no more fighting to damage it any further. She then teleported Team Seven and Obito into an erupting volcano, telling them that she will have them disappear.

However, all five of them managed to avoid death thanks to cooperation. Seeing this Kaguya striked them once again with her hair, this time aiming with her Byakugan and firing needle like strands at Sasuke, who was saved by Naruto whom had just discovered his ability to fly. Noticing this, and Naruto's power resembling that of her son, Kaguya grew enraged and clashed with Naruto while declaring all the chakra in the world should once again be hers. As she knocked Naruto back, Sasuke appeared above her and attempted to strike her with the Susanoo.

This proved useless as Kaguya simply knocked Sasuke back, where he almost fell into the lava, before teleporting behind Naruto and using one of his Truth-Seeking Balls as a platform for safety. Kaguya immediately entered a dimensional void and transported herself behind the duo, noticeably crying due to the resemblance they held to her own children, before forcing Black Zetsu over their bodies. Black Zetsu then began to tell the two youths the truth about past events, things that even Hagoromo was unaware of. He told them that Hagoromo and Hamura once sealed Kaguya using the same powers that Sasuke and Naruto inherited and that he had been manipulating the descendants of Asura and Indra for presumably all of time, attempting to get an Uchiha to awaken the Rinnegan and activate the Infinite Tsukuyomi so that the Ten-Tails — and subsequently, his mother, Kaguya — would be revived. Kaguya, still crying, then stated she hated her two sons for what they did to her, causing Naruto to grow enraged, not understanding why Kaguya was so angry that her sons had gained powers like her own, before tearing the Black Zetsu off himself and Sasuke. Sasuke stated they would have to seal Kaguya, to which Naruto quickly agreed.

Legacy
Despite Kaguya's meaningful attempts to bring forth peace, her methods only brought it about temporarily. It also inspired the people of Hagoromo's era to weaponise chakra for wars instead of using it for peace, which would include the tailed beasts being seen as nothing more than masses of powerful chakra to exploit and control. Before she was sealed away, she created Black Zetsu as a tool to facilitate her revival. Black Zetsu's actions throughout the history of the shinobi world included influencing the Uchiha clan for hundreds of years, tampering with the Naka Shrine stone monument to manipulate an Uchiha such as Madara Uchiha to carry out the Eye of the Moon Plan, and creating Akatsuki as a project to prepare the Infinite Tsukuyomi, which led to the Fourth Shinobi World War. Madara would later succeed in casting the Infinite Tsukuyomi upon the entire shinobi world thinking he had accomplished his goal when in reality he facilitated the revival of Kaguya. Finally, Black Zetsu manifested his will into Madara, using him as a vessel to once again bring Kaguya back into the shinobi world.

Trivia

 * Her name and title are likely references to Princess Kaguya, the main character from, which is said to be one of the oldest Japanese legends in written record. According to the legend, Princess Kaguya wears a when she returns home to her kingdom. The name  roughly means "big bamboo tree" and is derived from an obscure passage in the second volume of the Kojiki about the genealogies of Emperor Suinin, eleventh emperor of Japan, which states that he had a consort named , the daughter of a king named ; tradition holds that these individuals served as the basis for Princess Kaguya and the old bamboo cutter in the aforementioned tale.
 * Her horn-like appendages may symbolise rabbit ears, representing her connection to the moon by evoking the moon rabbit; pop culture depictions of Princess Kaguya and the moon-folk often incorporate features like rabbit ears for this reason. This also fits with her being known as the.
 * The main concept of a woman eating forbidden fruit may be based on the Bible's Book of Genesis, in which Eve ate the fruit from the tree of knowledge, which is led to the original sin of mankind.
 * It appears that there may be connections between Kaguya and the Moon Goddess in Mayan mythology. According to the Mayans, the Moon Goddess is actually the grandmother of the Sun, whom is constantly harassed by his elder brother. Upon her death, she bestows her power upon the elder brother, making him the Moon God. This is a strong parallel made to the brothers Indra and Asura, as the former is the wielder of the moon symbol whereas Asura is represented by the sun symbol, which was proven upon Naruto Uzumaki and Sasuke Uchiha being given chakra by Hagoromo Ōtsutsuki.
 * In chapter 670, Kaguya's name was written in hiragana. Then in the later chapters, her name was written in katakana.
 * Kaguya can be considered the progenitor of the Senju, Uchiha, Hyūga and Uzumaki clans as she is the mother or grandmother of each clans ancestor and originator along with the source of the Uchiha and Hyūga clans dōjutsu kekkei genkei's and the powerful chakra of the Senju and Uzumaki clans.

Quotes

 * (To Kakashi when asked about her objective) "This place… this earth is my precious nursery. I cannot let you damage it any more… Let us end this battle. […] Here… I shall erase you all from existence right now."
 * (To her sons) "I hate you… Hagoromo… Hamura… You both belong to me."