Phantom limb pain is defined as abnormal sensation from an amputated limb. There is overwhelming evidence regarding central nervous system changes in phantom limb pain, however the role of peripheral mechanisms and psychological factors are as important in the pathogenesis of phantom limb pain. Phantom limb pain is a very common condition in patients with amputation. The phantom limb pain should be differentiated from nonpainful phantom sensation, residual limb pain and stump pain secondary to bony overgrowths. The treatment of phantom limb pain is difficult. The evidence for the use of pharmacological approaches for phantom limb pain is weak and non-pharmacological approaches do not work for most of the patients. Prolonged phantom limb pain interferes with the ongoing rehabilitation and prosthetic fitting leading to poor functional outcome. Multi treatment approach, tailored to the individual needs of the patients, has the best chance of improving the symptoms of phantom limb pain and functional outcome.