Phantom types are a way to add extra type information in TypeScript that does not exist at runtime but helps the compiler catch mistakes. We define a generic type that combines a real type with a phantom tag. For example, we tag numbers as USD or EUR using phantom types. When we create values with these tags, TypeScript treats them as different types even though they are both numbers. This prevents us from mixing currencies by mistake. The code example shows defining phantom types, creating tagged values, and a function that only accepts USD tagged numbers. The execution table traces each step: defining types, creating values, and calling the function. It shows that adding two USD values works, but mixing USD and EUR causes a type error. The variable tracker shows how values change with phantom tags. Key moments clarify that phantom types exist only at compile time and prevent mixing incompatible types. The quiz tests understanding of type errors, variable values, and the role of phantom types. The snapshot summarizes phantom types as compile-time tags that improve safety without runtime cost.