Physical damage is a type of damage that can be inflicted in Demon's Souls.
Physical damage is split into four subtypes: Standard, Blunt, Piercing, and Slash. Generally, a creature or character that resists physical damage is not resistant to all types of physical damage. Physical damage is separate from falling damage, so increasing physical defense will not necessarily reduce falling damage.
Physical damage is dealt by unarmed attacks, all weapons except the Large Sword of Moonlight, and falling or rapidly moving objects. As such, it is the most common form of damage in the game. Some weapons can deal more than one type of physical damage; which type depends on the particular attack used. A weapon's physical damage will always be modified by either Strength or Dexterity; in most cases, both stats contribute to some degree.
The player can increase all subsets of physical defense by leveling up any stat, although Endurance increases physical defenses at the fastest rate. Equipping any armor also increases physical defenses. Some sets of armor vary in what form of physical damage they defend against best, but in general, the heavier an armor set is, the better defense it offers.