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Deals damage. The attack repeats itself for 2-3 turns, during which time the user is locked in play, after which the user becomes confused. The user only uses up PP on the turn the move is first used, and not on subsequent rampage turns. If the user is prevented from moving while rampaging, the attack misses, or is blocked by Protect or Wonder Guard, the attack will immediately end and the user can switch attacks. If this move is called by Sleep Talk, the move is used for one turn and does not confuse the user. The confusion side-effect will only occur if the user ends its Petal Dance naturally, and without disruption. The confusion is not preventable with Safeguard, but can be prevented by Own Tempo. In a double or triple battle, the target of this attack is randomly selected from all opposing Pokemon, even if they are not adjacent to the user.
While Petal Dance may seem like a competitively viable move due to the boost in its Base Power this generation, it is usually not recommended to use due to its poor coverage. Grass-type attacks are resisted by a fairly large amount of common threats, and you probably don't want to be locked into a move like this. Lilligant could use Petal Dance for sweeping purposes, but, as stated, you just don't want to be locked into a move with bad coverage, even if it is powerful.
Leaf Storm is a stronger alternative that does not lock the user into the move, but lowers the user's Special Attack by two stages.