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When it seemed like it was the end for Naruto in his fight against Sasuke in the Valley of the End, the Nine-Tailed fox grants Naruto more chakra than he has ever received before. In this stage Naruto gains all the physical attributes that he gained in the first stage as well as a 1-Tailed Fox outline around his body made of chakra. This chakra is hot. So hot, that the water around Naruto is boiling as Naruto is in this stage. The fox-shaped chakra around Naruto's body isn't just for show though. It increases Naruto's reach, as he can thrust his physical arm forward and attack his opponent with an extendable arm made of chakra. In addition to that, it can act as a defense mechanism and deflect incoming attacks without Naruto even controlling it. And of course, Naruto can heal quicker than normal, and is faster and stronger than he was in his tail-less Demon Fox form. Despite his beastly look, Naruto is conscious at this level, and can control what he does.
