After the Sage of Six Paths separated the Ten-Tails' chakra from its body to create the nine tailed beasts, he used Chibaku Tensei to seal the beast's husk within the newly-created moon. Centuries later, Madara Uchiha awakened the Rinnegan and used it to break the seal and summon the husk, which he christened the Demonic Statue of the Outer Path.
In an attempt to extend his lifespan in his old age, Madara used the Demonic Statue as a catalyst to cultivate Hashirama Senju's DNA, producing a non-sentient clone of Hashirama in the form of a gigantic flowering tree. He was then able to live beyond his natural lifespan by attaching himself to the tree, which served as a means of life support by continuously supplying him with the statue's chakra. Madara believed that the Demonic Statue and Hashirama's DNA produced artificial humans, when in actuality Black Zetsu was removing them from within the Demonic Statue, where they had been stored for centuries. When Obito later agreed to further Madara's cause, the elderly Uchiha explained to him that reviving the Ten-Tails by sealing the tailed beasts within the statue would be vital to the Eye of the Moon Plan. It was only after convincing Obito to carry on his plan that Madara disconnected himself from the Demonic Statue, and with his dying breath, told the young man that he was to act using his name until the time of his resurrection.
In the anime during the Third Shinobi World War, Nagato unconsciously summoned the Demonic Statue in a fit of rage when his friends were injured in an enemy ambush, though he quickly regained his senses and fell unconscious, at which point the statue disappeared. An enraged and grief-fueled Nagato summoned the Demonic Statue after being forced to kill Yahiko by Hanzō. The statue pierced Nagato's back with a number of black receivers and drained his life force, leaving him emaciated while also granting him a means of killing Hanzō's men, with only Hanzō himself escaping the altercation alive. As Pain, Nagato would summon the Demonic Statue whenever a jinchūriki or tailed beast was captured by Akatsuki so that the organisation's members could seal the beast inside it.