The sword - Naruto might have the ability to channel his chakra. So it could be used to perform powerful attacks like chakra - infused slashes. Just like how Naruto can use his Rasengan in his normal form, the sword could release a similar type of energy attack when swung with enough force.
Well, it could be really interesting. Maybe Naruto discovers Hinata in a strange situation where she's been cursed or something and she gradually transforms into a sword. Naruto then has to figure out how to reverse it while also using the sword - Hinata in battles against powerful enemies.
Maybe it has the ability to absorb chakra. So when Naruto is in a fight against an opponent with a large amount of chakra, he can use the sword to drain some of that chakra, weakening the enemy while strengthening himself. The sword could then store that chakra for later use, like to boost Naruto's own attacks.
It could be an old ninja who sees Naruto's potential. This ninja might have left the sword as a way to help Naruto in his future battles.
It could have the power to cut through almost anything. Since Naruto is a powerful ninja, the sword might inherit some of his chakra's strength, allowing it to slice through thick barriers or even powerful jutsu defenses.
I think a chakra - infused sword would be great for Naruto. This type of sword could be used to channel his own chakra, allowing him to perform unique attacks. It could also change shape or size depending on the amount of chakra he pumps into it. For example, it could extend to reach far - away enemies or become wider for more powerful slashes.
Naruto would need training in swordsmanship fundamentals. This includes proper grip, stance, and basic slashing and thrusting techniques. He would also need to train his balance, as using a sword requires different body movements compared to his normal fighting style.
It could have the power to absorb chakra. When an enemy attacks with a chakra - based jutsu, the sword could soak up that energy and either store it for Naruto to use later or use it immediately to strengthen its own attacks.
In fanfiction, the sword could have a spiritual power. It might be able to communicate with Naruto on a spiritual level, guiding him in battles or revealing secrets about the past. It could also have the power to create illusions specific to the Cloud Village's history or mythology, confusing enemies and giving Naruto an advantage in combat.
It could be due to a magical artifact. Suppose Naruto comes across an ancient and mysterious sword - like artifact. When he touches it or tries to use it, it backfires and instead of him controlling the sword, he is transformed into it. This could lead to a whole new adventure as his friends try to figure out how to reverse the transformation.
Naruto's relationship with the village elders could change. They might be cautious about Naruto having such a powerful and potentially dangerous item. They could try to restrict his use of the sword or keep a closer eye on him. But Naruto, being the free - spirited ninja he is, would likely resist these restrictions if he felt they were unjust. This could lead to some political tensions within the village as Naruto tries to balance his loyalty to the village and his new - found power with the dragon sword.