This weapon has the ability to allow its wielder to perform any technique and allows them to use any of the basic nature transformations. The Dragon Blade also enables the user to cut and absorb their opponents' chakra, similar to Samehada. Finally, a very useful ability the sword has is to stay forcefully partial to its owner, so it is always trying to stay in connection to Naruto. However, it seems there is a limit to this ability, as it was gone for good after Naruto lost it in Mount Koryū. Using this blade is not without its drawbacks, though; in order to have complete control over the blade, the wielder must have exceptionally high levels of chakra. Naruto is able to wield the blade without drawbacks due to the Nine-Tailed Demon Fox inside of him.
What gives the Dragon Blade the ability to use all of the basic elements are five orbs which are inserted into the centre. The orbs are coloured for their elements, similarly to Kage hats; red for fire, green for wind, yellow for lightning, orange (instead of brown) for earth, and blue for water.