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God is also said to be a simple substance (§47) but it is the only one necessary (§§38–9) and without a body attached (§72). Monads perceive others "with varying degrees of clarity, except for God, who perceives all monads with utter clarity". God could take any and all perspectives, knowing of both potentiality and actuality. As well as that God in all his power would know the universe from each of the infinite perspectives at the same time, and so his perspectives—his thoughts—"simply are monads". Creation is a permanent state, thus "[monads] are generated, so to speak, by continual fulgurations of the Divinity" (§47). Any perfection comes from being created while imperfection is a limitation of nature (§42). The monads are unaffected by each other, but each have a unique way of expressing themselves in the universe, in accordance with God's infinite will.

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Leibniz uses his theory of Monads to support his argument that we live in the best of all possible worlds. He uses his basis of perception but not interaction among monads to explain that all monads must draw their essence from one ultimate monad. He then claims that this ultimate monad would be God because a monad is a “simple substance” and God is simplest of all substances, He cannot be broken down any further. This means that all monads perceive “with varying degrees of perception, except for God, who perceives all monads with utter clarity”. This superior perception of God then would apply in much the same way that he says a dominant monad controls our soul, all other monads associated with it would, essentially, shade themselves towards Him. With all monads being created by the ultimate monad and shading themselves in the image of this ultimate monad, he argues that it would be impossible to conceive of a more perfect world because all things in the world are created by and imitating the best possible monad.

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Leibniz indicates that a world is a set of compossible things, however, that a world is a kind of collection of things that God could bring into existence. For not even God can bring into existence a world in which there is some contradiction among its members or their properties.

When Leibniz speaks of a possible world, he means a set of compossible, finite things that God could have brought into existence if he were not constrained by the goodness that is part of his nature. The actual world, on the other hand, is simply that set of finite things that is instantiated by God, because it is greatest in goodness, reality and perfection. Naturally, the fact that we are here experiencing this world—the actual world—means that there is at least one possible world. In Leibniz's view, there are an infinite number of possible worlds.

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