The Phantom is a colossal demonic entity encountered in the Otherworld version of Toluca Lake outside the infamous ghost town of Silent Hill and the final boss of Silent Hill: The Arcade. It is a gigantic and twisted beast with a rotten head of a long-haired blonde woman with an arm coming from its mouth. Depending on the results of the fight with the Phantom, the ending of the game will be affected completely.
A good or a bad ending is achieved depending upon the way the player defeats the monster. During the battle, a swarm of tiny hands surround the Phantom. To earn the Good Ending, the player must shoot all of them. To earn the Bad Ending, the player must not shoot the hands.
The Phantom represents the repressed and sad memories of Hanna, the girl who died at her mother's hands on the Little Baroness boat many years prior to the game. The boss has the appearance of a giant, rotten head, with an arm coming from its mouth. The arm may represent how Hanna struggled trying to get out of the water, but failed and died.