PhoneGap allows developers to build mobile apps using standard web technologies like HTML, CSS, and JavaScript. It works by packaging web apps so they can be deployed and run as native mobile applications on different platforms. The document discusses how to build an Android app using PhoneGap, including setting up the project structure, adding the PhoneGap library, implementing a basic "Hello World" app, and extending functionality through plugins. It also covers debugging PhoneGap apps and some limitations compared to native development.