In a number of recent studies by the authors, a new physical phenomenon has been discovered and investigated in detail — the formation of a detonation wave during the condensation of highly supersaturated carbon vapor. The essence of the phenomenon is that an initiating shock wave propagating through an exothermic carbon compound (for example, carbon suboxide C3O2 or acetylene C2H2), as a result of its rapid dissociation, yields a highly supersaturated carbon vapor; the energy released during its condensation forms and maintains a detonation wave. This review describes in detail the results of experimental studies and their analysis based on the detailed kinetics and thermodynamics of the processes occurring and the one-dimensional Zeldovich–Neumann–Döring (ZND) theory of detonation. The potential to practically use the discovered phenomenon is discussed.