Kaguya Ōtsutsuki Strikes

Drawn from the later stretch of the manga, this arc spans chapters 678 to 699 across volumes 70 through 72, and in the anime it is divided into two halves titled The Origins of Ninshū and The Chapter of Naruto and Sasuke. It introduces Princess Kaguya Ōtsutsuki, the source of all chakra, and charts her sudden return and attempt to seize the world. The story follows the Birth of the Ten-Tails' Jinchūriki and leads into The Last, the epilogue, and later side stories.

Moments after the Infinite Tsukuyomi is unleashed, Black Zetsu turns on Madara, stabbing him and revealing that he has always carried Kaguya's will. Using Madara as a vessel, he resurrects the rabbit goddess into the present age. Kaguya scatters Team Kakashi and Obito across a series of shifting dimensions, from lava wastes to frozen peaks and desert voids, and only Naruto's newfound flight and Sasuke's teleportation keep them alive. Sasuke is thrown into an isolated realm, forcing Obito and Sakura to mount a rescue while Naruto stalls the goddess with waves of clones.

The battle exacts a heavy toll. Obito shields the others from a lethal strike and dies, but not before restoring Kakashi's twin Mangekyō Sharingan so his old comrade can fight on. With Hagoromo guiding the reunited team, Naruto and Sasuke land their sun and moon marks on Kaguya and complete the Six Paths Chibaku Tensei, sealing her away and freeing the tailed beasts. Hagoromo and the assembled Kage then summon everyone home, but Sasuke reveals a darker plan: to execute the five Kage and remake the shinobi order with himself as its shared enemy.

Naruto and Sasuke carry their feud to the Valley of the End, trading titanic jutsu until both collapse, each losing an arm in the final clash of Rasengan and Chidori. Waking side by side, Sasuke at last accepts Naruto as friend and victor, and the two dispel the Infinite Tsukuyomi together, releasing the world and killing the freed Tobi. Konoha holds funerals, including a memorial for Neji, and Sasuke is imprisoned before a pardon is arranged through Naruto's appeals. Kakashi succeeds Tsunade as the Sixth Hokage, Tsunade crafts artificial arms for the two rivals, and Sasuke departs to seek redemption, taking back the forehead protector Naruto returns to him.