The sporting event was postponed to 2021 on Tuesday after a conference call between the IOC president Thomas Bach and Japan's Prime Minister, Shinzo Abe.
Phelps feels several athletes could have difficulties coping with this unprecedented postponement.
Phelps relieved that Tokyo Olympics got postponed
Phelps said the decision by the IOC was smart.
"Honestly, my first thought was I was relieved, he said. Now, there's more of a chance that we can beat this thing and do what we need to do to save as many lives as possible. I was happy to see them logically making a smart decision. It's just frustrating it took this long."
I can't imagine what these athletes are going through: Phelps
"It's a total bamboozle," Phelps told The Associated Press on Tuesday. "There's such a wave of emotions. I can't imagine what these athletes are going through right now."
Mental health is so important right now, says Phelps
Phelps said it's a challenging time for athletes who had their sights on the Olympics.
"As athletes, we're so regimented. At this point, all the work is done. We're just fine-tuning the small things to get to this point. Now it's like, Oh ... we're not competing.' All these emotions start flaring up. I really think mental health is so important right now."
Phelps shares his message on coping with the situation
Phelps said the key to coping is keeping things as simple as possible.
"Just control what you can control," he said. "We're in such uncharted waters. We're getting all these big questions thrown at us: What if? What if? What if? It's so hard to understand. We're having a hard time just wrapping our head around it," the champion swimmer claimed.