Shippou's a young kitsune who lost his father to the Thunder Brothers, Hiten and Manten—a tragedy that set him on the path to join Inuyasha and Kagome's group. He's actually their first real traveling companion, making him kind of foundational to the whole dynamic. Since then, Inuyasha and Kagome have basically become his older siblings, which is pretty sweet considering he's the youngest and smallest of the crew.
As a fox youkai, Shippou's got access to shapeshifting and fox fire magic, though fans often note that his attempts at these abilities tend to go hilariously wrong. His transformations are shaky and incomplete, usually giving him away thanks to that telltale tail. He's more reliable when he's pulling illusion tricks with toys—his spinning top attack actually works—or when he's turning into a wooden flying horse. He can also multiply things (leaves, himself, you name it) and has this weird move where he leaves behind yelping mushrooms and acorns. It's very on-brand for a kid character, honestly.
What he's best known for, though, is his personality. Shippou's naively observant in a way that makes him prone to making cheeky, pointed comments at Inuyasha—usually unsolicited advice that earns him a good bonk on the head for his trouble. It's their whole dynamic.
Being so small and light, he spends most of his time traveling hitched onto someone's shoulder, riding on Kirara's back (when she's in kitten form), sitting in Kagome's arms, or nestled in the basket on her bike. You rarely see him actually walking anywhere on his own.
Content compiled by AnimeList.moe from publicly available sources.