The Creation of All Things Technique was a technique possessed by Hagoromo Ōtsutsuki, who used it to create the nine tailed beasts. The process he used is explained to have initially involved the administration of imagination, and the spiritual energy which forms the basis of Yinchakra to create physical forms from nothingness. Then, through the application of vitality, and the physical energy which forms the basis of Yang chakra, he would breathe life into the resulting creations.
Kakazu's version is that he can only create things like monsters, Truth-Seeking Balls, dolls and humans. He cannot create things on a overpowered scale like Hagoromo Otsutsuki could with the Tailed Beasts and his massive Truth-Seeking Balls. It was also revealed that this is the way Kakazu can send his chakra to others and heal them of their wounds and illnesses.