The Reality Gems are gems with reality-warping supernatural powers that plays a key role in the use of the Reality Gauntlet and they are both created by the maniacal Circus Gothica ringmaster Freakshow.
Their first appeareance was in "Reality Trip" when the Guys In White ask Freakshow for help, know how to use the Reality Gauntlet to eradicate all the ghosts. Then he starts to explain how it works and reveals that the Power Source was his left earring and uses the Gem of Life to escape with Lydia.
After his second encounter with Danny, in Humpty Dumpty's concert, they activate and hide the gems from him so he can never use them.
Then they must find them again all over the country and give them to Freakshow so they can get their family back. After Danny defeats Freakshow and use the gems to turn everything back to normal, he destroys them.
- Gem of Life is a square ruby. This gem allows the wearer to control the power of life and death, and potentially give life to any lifeless object, or possibly take life away from the living. Examples range from Freakshow turning train cars into robots or a space shuttle coming to life because a little boy touched the gem and dropped it on the shuttle.
- Gem of Form is a diamond-shaped topaz. This gem gives the wearer of the gauntlet the power to transform one thing into something different. For example, in the final confrontation, Danny is turned to an orange jello like substance that is crashed into by the coaster holding Danny's family and friends as well as their families. Another example is turning Gothapalooza into a Teddy Bear Land.
- Gem of Fantasy is a circular sapphire. This gem allows the wearer to make their wishes come true; that is, they can change reality into fantasy, and fantasy into reality. For example, 3 geeks had transformed into supervillains according to their costumes. It works in a similar way to the Reality Gauntlet but with less power.
- Power Source is a triangular ruby that is actually the gauntlet's power source. Freakshow wears it as an earring suggesting that it is a family heirloom like his Crystal Ball Staff. It is sometimes referred to as the "Gem of Power" by the Danny Phantom fanbase. It is the gemstone that gives power to all the others, without it, all the gems and the gauntlet are useless.
- The Reality Gems along with the Reality Gauntlet are reminiscent of the Infinity Gems from the Marvel Comics universe.