Fox demons use Illusion magic which includes shape shifting. Since Shippo is a fox demon he has this power but it is un-trained and therefore not very powerful. Kistune-bi: or 'foxfire' is his attack, when he yells this he holds out his hand and blue flames shoot out of his palm. I'm not sure if this is a illusion or real fire bceause it doesn't seem to do any real damage except to distract the enemy. Shippo was saved by his late fathers foxfire when he and kagome were attacked by Hiten so I guess it can be used as a shield also.

Shape Shifting: Shippo constantly shape shifts and carries around leaves, nuts and a collection of other things in his vest to help him transform. When he shape shifts he usually jumps in the air and does a flip and transforms with a puff of smoke and says "ta-da I'm a -insert thing here-" directly after. So far he has transformed into a spider, bow and skull, (all which looked pretty silly) the thing he transforms into most often is a giant pink ballon like thing with large googly eyes and tiny legs which has the power to float. When bored the kitsune often transforms into said pink ballon thingy and eats Inu-Yasha..why? no reason other then to annoy Inu-Yasha ^__~*

Illusions: Shippo along with shapeshifting can make things seem larger or heavier when they're really not, he can only do this for a certain amount of time (the same with shape-shifting) and after it regains it's original shape. An example of this is when he uses his spinning attack by throwing a spin top on Maten's head and making it grow to a enormous size crushing Maten to the ground then after a short period of time returns to normal leaving a stunned but un hurt Maten.

Claws and Teeth: Like most demons Shippo posses's a pair of sharp fangs which he's not afraid to use, he has a strong jaw and can hang on for a long time.