With the Millennium Eye, a duelist can read the minds of others as well as see through their eyes, allowing the holder to know what is in their opponents hand at all times no matter what. The holder of the Millennium Item has the ability to seal the souls of his/her duel-defeated victims. The souls remain trapped until the soul stealer is defeated in a duel and the souls are avenged.
The Eye's first owner was Akhenaden. Later, during Maximillon Pegasus' venture to Egypt, his left eye was gouged out by Shadi and replaced with the Eye. According to Shadi, because nothing bad happened to Pegasus, he was the Eye's chosen owner for that time. Pegasus then wore the eye for the rest of his life (normally hidden under his hair) until a Necrophades Cult member stole it from him. The Necrophades Cult owned it until Zorc Necrophades was defeated and the Eye of Horus took it, along with the other Millennium Items.