Phase equilibrium refers to a state where multiple phases of a substance coexist in thermodynamic balance, meaning there are no net changes in the amount of each phase over time. This condition is characterized by equal chemical potential across the phases, ensuring that the rates of phase change (like evaporation and condensation) are equal. Understanding this concept is crucial for analyzing phase diagrams, utilizing property tables, and applying the Clapeyron equation, as these tools help to describe and predict the behavior of substances during phase transitions.