"Genjutsu or Reality?" (幻術か現実か 五感を制するもの, Genjutsu ka Genjitsu ka, Gokan o Seisuru Mono) is episode 206 of the original Naruto anime.
Naruto, Sakura, Kurenai, Yakumo and Team 8 return to Konoha, which appears to have been destroyed in their absence. They learn from the head of the Kurama clan that they are trapped in a genjutsu that has enveloped the entire town, and Naruto, Sakura, and Team 8 manage to escape with the help of Unkai. They then enter the mansion to find Kurenai and Yakumo.