Phantom Bay formed as a pandemic project in Bremen, Germany in June 2020. A self-titled debut album was recorded in 2021 and released in April 2022, followed by shows through Germany and Austria, including four shows with Militarie Gun on their first European tour.

2023 marked the band's first trip to the UK, followed by a show supporting Turnstile in Berlin in June 2023. Phantom Bay put forth a follow-up EP, Underground, in September 2023, and embarked on their first US East Coast tour shortly after. In 2024, the band supported Thursday on 3 shows in Germany.