The motion detection feature on the Xiaomi indoor camera utilizes advanced algorithms to analyze changes in the video feed. When the camera detects movement within its field of view, it triggers an alert and begins recording. This can be customized to send notifications to the user's smartphone or other connected devices in real-time. The sensitivity and detection zones can also be adjusted to reduce false alarms and ensure accurate monitoring. Overall, the motion detection feature on the Xiaomi indoor camera provides reliable surveillance and peace of mind for users looking to secure their home or office.