Just about every magical power you can think of can be found in the world of anime, but one of the most fun is animal transformation. Anime characters who can turn into animals crop up in action anime like One Piece and Bleach, as well as slice of life anime like Wolf Children. No matter where they appear, they add excitement to their anime of origin.
Animal transformations can get pretty wild. Kars from JoJo's Bizarre Adventure can transform into literally any animal because he carries the DNA of all species on Earth inside of his body. Meanwhile, the entire Sohma family of Fruits Basket transforms into animals of the Chinese Zodiac when hugged by a member of the opposite sex. Humans are animals too, so other creatures with human transformations are still fair game for this list. Filo from The Rising of the Shield Hero actually started life as a fluffy pink bird, but eventually gained a human transformation, and Ahiru from Princess Tutu believes she's a human until one day she discovers that her true form is actually a duck.
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Yoruichi Shihouin is a powerful member of Soul Society, serving in high ranking positions like captain and commander. She's also able to transform into a cat with a distinctively masculine voice. Exactly how she obtained her feline transformation is unlcear, but she spends as much time in it as possible. She's proud of her cat self, and gets angry if other people don't appreciate its charm and beauty.
Once an ordinary human, Rimuru Tempest was reincarnated as a slime. While one wouldn't expect anything especially impressive to come out of a slime, Rimuru is actually one of the most powerful characters in recent anime history. Among his many abilities is transforming into any creature who he's able to analyze by engulfing them in his gelatinous body. This includes animals - one of the first creatures he ever turns into is a dire wolf. Rimuru does more than just take on the creature's appearance - he also gains any magical abilities that they might possess.
Filo is one of Naofumi's companions on his journey, and she's also someone who can swap species at will. Born a small pink bird called a Filolial, Filo eventually learns to take on an exceptionally adorable human form with bird wings. She alternates between forms as she pleases, but she has an excitable, instinct-driven personality that is often associated with animals.
Holo is a spirit of the harvest, who usually takes on the form of a human with a tail and ears. This is convenient for her as she travels with Kraft Lawrence, a merchant who moves from town to town peddling his wares. However, she's also capable of fully transforming into an enormous wolf.