TRANSPONDER OBSERVED
Pilot/Controller Glossary with JO 7110.65BB, Change 3, effective July 9, 2026 · Official text on faa.gov
Phraseology used to inform a VFR pilot the aircraft’s assigned beacon code and position have been observed. Specifically, this term conveys to a VFR pilot the transponder reply has been observed and its position correlated for transit through the designated area.