Kalad's phantoms are a mythical army that Kalad, now known as Vasher, created in Warbreaker.
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They were known to be a virtually unstoppable force and were rumored to be passed down by Peacegiver. When Peacegiver left, he said that he had left the army for the nation of Hallandren. However, as no one managed to locate the army, the idea grew to be disbelieved and soon the word only became known as a swear word.
Plot
Towards the end of the book, it is revealed that the D'Denir statues in Hallandren are the phantoms. They are a form of Lifeless, made of human bones encased in stone in the form of massive warriors. Their human shape and bones make them easy to be awakened by Susebron, and he sends then to stop the war between Hallandren and Idris.