According to the villagers of Hoshigakure, this meteorite, called a "star" (星, hoshi) by the villagers, crash landed in the Land of Bears roughly 200 years prior to the start of the series. In the vicinity of the crash, an entire forest was destroyed, and plants and trees would not be able to grow for years to come. It used to sit in the middle of the Hoshi-nin training dōjō, resting on the eagle claw pedestal, but was eventually destroyed by Naruto Uzumaki after Akahoshi fused it into his chest.
By utilising the chakra-enhancing radiation from the meteorite, villagers could obtain supernatural chakra levels and manipulate its shape and form to match various situations. Its most prominent use is the Mysterious Peacock Method. This is not without its drawbacks, however. Improper chakra control can bring serious, and sometimes life-threatening, conditions to its users. Sumaru's parents, Natsuhi and Hotarubi, were the only two ninja to master this technique, but even then, there is still a chance of dying from a side-effect of enhanced chakra, as seen with Hotarubi. It was for this reason the Third Hoshikage discontinued the training.
When Akahoshi fused the meteorite to his chest, it granted him an enormous increase in chakra. When Neji Hyūga used his Byakugan to view Akahoshi's chakra network, he pointed out that his chakra was completely overwhelming and taken over by the chakra generated by the meteorite's energy. With the power granted by the meteorite, Akahoshi was given an incredible increase in his control over the Mysterious Peacock Method. Under its influence, he was able to overpower the entirety of the villagers and Naruto Uzumaki, until he was granted aid from Natsuhi's apparition.