When performed, Zelda or Sheik pulls out a massive bow and fires a large arrow in a straight line forward. She starts by creating a line of light in the arrow's path, paralyzing opponents hit before finally firing the arrow itself. Both versions of the arrow deal 43% damage to opponents hit but have different knockback trajectories: Zelda's arrow launches in a diagonal trajectory, while Sheik sends opponents at a semi-spike angle.
Light Arrows are a powerful weapon in The Legend of Zelda series most often used to stun Ganondorf, leaving him vulnerable to the Master Sword. Link was first able to use the Light Arrows in The Legend of Zelda: Ocarina of Time, but Zelda would eventually use Light Arrows herself in The Legend of Zelda: The Wind Waker, where she uses Link's Hero's Bow to fire them in the final battle with Ganondorf. However, the Light Arrows in SSF2 are based on their design in The Legend of Zelda: Twilight Princess, where Zelda is granted them by the Spirits of Light and once again uses them in the final battle with Ganondorf.
The concept for this weapon may be based on the Silver Arrows in the original The Legend of Zelda, a similar weapon which Link uses to defeat Ganon.