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The limits of the power ring's abilities are not clearly defined and it has been referred to as "the most powerful weapon in the universe" on more than one occasion.
Stories in 2006 retconned the ring's long-established lack of effect on yellow objects, stating that the ring-wielder need only feel fear and overcome it in order to affect yellow objects.
In one issue Kyle Rayner blows up an entire yellow sun in order to destroy a group of hundreds of unpopulated planets that held deadly sicknesses by manipulating the sun's energy to destroy itself.
The rings can act as semi-sentient computers, including accessing the Book of Oa, a massive database of everything from the laws of the Guardians and the Corps to the history of the universe.
Kyle Rayner's ring was the first ring to absorb more power than originally thought, having stored the main power battery's energy following its explosion on Oa.