The formation system is a new addition to series' battle system. These formations alter positioning (which affects attack range), provides stat bonuses and/or penalties, and allows the team to use Formation Skills that cause a special effect or invoke a unite attack that involves all active members of the team.
Formation Skills are usable once per battle unless indicated. Skills that have unlimited use do not prevent you from using a single-use Skill after usage. Starred (*) Skills execute first in battle while non-starred Skills execute when your fastest character would normally attack.

Short range characters have normal accuracy in the 1st and 2nd rows.
Medium range characters have normal accuracy in the 2nd and 3rd rows.
Long range characters are not affected by position.

Formation Appendix

Standard: Standard formation used in previous games
Soothe: Each character is healed by 30 + Prince's level.

Arrowhead: All characters: Attack +2
Blitzkrieg: Column attack equal to the team's combined Attack.

Double Arm: All characters: Physical and Magical Defense +2
Guardian*: All characters get a +20% PDF boost for the round. All characters attack in normal turn order.

Goose: All characters: Accuracy and Technique +2
Wild Goose: All characters attack before enemy.

Cross: All characters: Attack +5
Southern Cross: Blanket attack (hits all enemies) equal to 0.4x of the active members' total ATK.

Crescent: All characters: Physical and Magical Defense +5
Half Moon*: Damage dealt to your party is halved for the turn. All characters attack in normal turn order.

Hungry Wolf: All characters: Accuracy and Technique +5
Wild Wolf*: All characters attack before enemy.

Tiger: Front line: Attack +10, Rear line: Magic +10
Tiger Slash: Column attack equal to 1.2x of the active members' total ATK.

True Men: All characters: Attack +20, Physical Defense -20, Evade reduced to 0
Elegy: Blanket attack equal to the active members' total ATK. Executes at the end of the turn. Can be use repeatedly.

Arrow Stance: Front characters: Physical and Magical Defense +20, Evade +10. Back characters: Attack, Accuracy, and Technique +10
Provocation: Front character is given Target status for the round (enemies tend to attack the character). Can be use repeatedly, as long the character is still alive.

Striking Arrow: All characters: Attack +10, Physical Defense -5
Asuka: Column attack equal to 1.4x of the active members' total ATK.

Circle: All characters: Physical Defense +10, Attack -10
Defensive Circle*: Enemies are unbalanced this turn. All characters attack in normal turn order.
Unbalanced targets cannot dodge! Good for Hunter Rune.

Crane Wing: All characters: Accuracy, Technique, and Speed +10
Crane Swoop*: All characters attack before enemy.

Sorcery: All characters: Physical and Magical Defense +5, Back row: MAG +20
True Chain Magic: Last row character will Chain Cast (spell activates twice for the cost of 1 MP) a spell of your choice.

Illusion: All characters: All Attributes +10
Spark: Annihilates all weaker enemies. Can only used when weaker enemies are present.

Limited Party Size Formations
Twin Slash: All characters: Attack, Speed, Physical Defense +10
Raging Slash: Blanket attack equal to 1.2x of the active members' total ATK.

Tri Wind: All characters: Attack and Magic +20, Physical and Magical Defense +10
Storm: Wind-based attack on a single target equal to 1.5x of the active members' total ATK.

Quad Lightning: All characters: Speed and Evasion +10
Lightning Dragon: Lightning-based blanket attack equal to 0.7x of the active members' total ATK.

Pent Phoenix: Center character: All Attributes +20
Dance of the Phoenix: Fire-based blanket attack equal to 0.6x of the active members' total ATK.

Large Character Formations
Blue Dragon (1 large character): Standard formation with 1 large character
Mononoke Heal: All characters are healed by an amount equal to 100 plus 5 per level of the large character.

White Tiger (1 large character): Front two rows: Attack, Physical and Magical Defense +10
Mononoke Enlightenment*: All characters get a +20 EVA bonus for the turn. All characters attack in normal turn order.

Red Phoenix (1 large character): Large character: Attack, Defense, and Evasion +10
Mononoke Fury: Large character will enter berserk state for 1 turn and attack the chosen enemy and absorbs all damage dealt as HP.

Black Tortoise (2 large characters): All characters: All Attributes +10
Mononoke Mastery: Annihilates all weaker enemies. Can only used when weaker enemies are present.