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The Phantom Ganon's Sword is an Enemy Weapon in Ganon's Castle that Link can pick up and use after each time Phantom Ganon is defeated. Upon entering a new room in the correct section of the Dungeon, Link will reencounter Phantom Ganon. After being defeated by Link, Phantom Ganon will vanish, leaving his sword behind to drop on the floor. The correct way forward is designated by the direction the hilt of the sword is pointing. Once Link defeats Phantom Ganon for the final time with the Light Arrows, Link can pick up the sword and is able to proceed to Ganondorf.
The following section is not part of the Zelda canon and should not be taken as such.
Phantom Ganon wields his Sword in battle in Hyrule Warriors Legends. After sustaining 30% damage, Phantom Ganon will summon a second, identical Sword and dual-wield both.