Infinite Tsukuyomi is one of the most powerful genjutsu in existence. It grants the user the ability to create anything within a genjutsu, no matter how detailed. Using this power, the user is able to generate an entire world exactly as they want. Through direct eye contact, the user can to cast his Genjutsu on another and drag them inside the dream world. The genjutsu is so powerful that even the dead may be revived within the confines of the illusion .
Prior to obtaining the Ten-Tails, a person may still cast a "limited" version of the technique through direct eye contact with another to bring them inside a dream world.
According to Madara, if the user is connected to the Demonic Statue of the Outer Path he may create create anything within the world, no matter how detailed.
- Madara Uchiha displayed a limited use of the technique through one of his replacement Sharingan in which he created a white world, and through direct eye contact cast his Genjutsu onto Obito Uchiha and dragged him into the dream world. Inside the dream world, Madara was able to manipulate and control it entirely.
- In the movie Naruto 6: Road to Ninja, Obito Uchiha casts a "Limited" Tsukuyomi on Sakura Haruno and Naruto Uzumaki, trapping them both inside a dream world where their desires are realized. As a consequence of having their dreams come true, most of their piers and fellow villagers gain an inverted personality within the Genjutsu and thus behave differently from their real world counter-parts.
By using the moon instead of the user's own eyes, the user may cast the genjutsu upon the entire Earth and trap all living beings within a dream world. To do this the user must become the Ten-Tails' Jinchūriki and with the god-like powers he would be granted by this, project his Sharingan on to the moon, the prison of the Ten-Tails' body, to cover the world in the Infinite Tsukuyomi.
- The Eye of the Moon Plan involves acquiring the Ten-Tails' power and body in the moon, which allows Obito and Madara cast an "Infinite Tsukuyomi" (無限月読, Mugen Tsukuyomi) throughout the entire world, effectively letting them conquer it.