Amphibious. The Baby Kraken can breathe air and water
Freedom of Movement. The Baby Kraken ignores difficult terrain, and magical effects can't reduce its speed or cause it to be restrained. It can spend 5 ft. Of movement to escape from nonmagical restraints or being grappled.
Keen Sight. The Baby Kraken has advantage on Wisdom (Perception) checks made while underwater.
Action Restriction. A familiar can't attack, but it can take other actions as normal.
Lightning Storm. The Baby Kraken magically creates three bolts of lightning, each of which can strike a target the kraken can see within 120 feet of it. A target must make a DC 13 Dexterity saving throw, taking 11 (2d10) lightning damage on a failed save, or half as much damage on a successful one.
Fling. One Large or smaller object held or creature grappled by the Baby Kraken is thrown up to 60 feet in a random direction and knocked prone. If a thrown target strikes a solid surface, the target takes 3 (1d6) bludgeoning damage for every 10 feet it was thrown. If the target is thrown at another creature, that creature must succeed on a DC 13 Dexterity saving throw or take the same damage and be knocked prone.
Ink Cloud (Recharges after a Short or Long Rest). While underwater, the Baby Kraken expels an ink cloud in a 20-foot radius. The cloud spreads around corners, and that area is heavily obscured to creatures other than the Baby Kraken if its underwater. Each creature other than the Baby Kraken that ends its turn there must succeed on a DC 13 Constitution saving throw, taking 6 (1d10) poison damage on a failed save, or half as much damage on a successful one. The area is heavily obscured for 1 minute, although a strong current can disperse the cloud.
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