Can manipulate ether with the Monado.
Ether in the context of Xenoblade Chronicles is the building block of all materials and is required for all living things to live. In the context of gameplay, it's treated similar to the "special/magic" stats traditional of RPGs, where each character has an ether statistic that determines how much ether based arts inflict, and conversely has an ether defense stat that determines how much ether damage is received. Anyone that wields the Monado will be able to manipulate the ether surrounding them to preform feats of incredible divine powers. In game, this is treated via special arts called Monado Arts that grants the user and/or allies distinctive properties, for example the art Monado Enchant allows allies to attack Mechon using regular weapons and Monado Shield protects all party members from arts caused by enemies.
Additionally, Shulk also has the ability of foresight, where Shulk can see into the future. Based on Shulk's actions, the future can either come true or be altered. This translates into gameplay where Shulk will get a forewarning of an enemy attack, and then can change the action by preforming tasks like warning others and using certain attacks.