Naruto has always dealt with the themes of legacy, power, and hard decisions, and if there is any rivalry that works seamlessly with this concept, it is surely the complex relationship of Itachi and Sasuke Uchiha. Many fans of the franchise argue that Sasuke ultimately surpassed his elder brother, but in analyzing their last battle, the narrative is very different. Itachi, regardless of being ill and holding back, still controlled the flow of their fight.
Itachi not only anticipated each move his younger brother made, but he also manipulated an outcome, protected and trained his brother Sasuke until he decided it was time to die. Sasuke may have gained raw strength later on; however, in that moment, Itachi was unquestionably still ahead of Sasuke.
Disclaimer: The article reflects the opinion of the writer and includes spoilers from the Naruto Shippuden anime/manga.
Did Sasuke surpass Itachi in their final battle in Naruto, explained

While Sasuke may be one of the most powerful characters in Naruto at the end of the series, I never truly believed he was better than Itachi, especially when we consider the final fight. I feel that scene was the most telling. Itachi was partially blind, terminally ill, and overly limited, yet he was still able to dictate the entire fight.
Every jutsu, every trap, and every movement was scripted by Itachi himself. It was not a battle for his life; it was a farewell. There is no way Sasuke would have stood a chance if Itachi had been serious and healthy.
Even Edo Itachi was still faster, had better awareness, and improved battle intelligence. During Sasuke and Kabuto's fight, Edo Itachi had to direct Sasuke to critical decisions and give him tactical ideas because Sasuke could not keep up even with his early Eternal Mangekyō Sharingan state.

He didn't even have to play around with Sasuke, there was nothing fearsome or intimidating about him for Edo Itachi. His existence had been devoted to the stress of sickness and evading training that might exacerbate his situation. Even brought back to life, the damage of his lifetime compromises remained.
Sasuke’s peak came later—possibly during the final stages of Eternal Mangekyo Sharingan, and without question, once he received the Rinnegan. His raw power, destructive scale, and his evolved Susano’o eventually surpassed Itachi’s—but that’s only part of the story.
Itachi’s strength was never limited to physical power. His intelligence, foresight, and strategic ability always placed him above. Even Sasuke’s later strength might not guarantee victory if Itachi had been alive, healthy, and free to train properly.
Itachi didn't have to "lose" that last fight—he did. He fulfilled the role of the elder brother to the end, teaching, guarding, and preparing Sasuke. That's why I still believe Itachi remained the superior shinobi—one whose strength was only equaled by his restraint, intent, and wisdom.
Final thoughts

Itachi and Sasuke's final battle in Naruto wasn't a true contest of power—it was a farewell staged by an older brother still in control, despite blindness and illness. While Sasuke eventually surpassed Itachi in raw power when he received the Rinnegan themselves, and again when he gained the EMS, Itachi had the better knowledge, foresight, and restraint in the instance of their fight.
Even Edo Itachi, constrained by his history and revival, still overshadowed Sasuke in knowledge and battle intelligence. Itachi didn't lose—he elected to choose when to end it.
Related links:
Naruto: The story's true core theme, explained
What are Hinata's powers and abilities in Naruto? Explained
What are Kankuro's abilities in Naruto? Explained