Hello, I have 2 TB iCloud space. Still my phone shows out of space. Please help

This article What's the difference between device storage and iCloud storage? will help. Please review it.

I would like you to realize and know one important thing and that is that there is NOTHING that you can do to increase the physical storage capacity of your iPhone. Your iPhone's storage capacity will forever remain the same as the day you bought it. 

You can purchase ➔ iCloud Storage from Apple where you create and save your iPhone backups and synch (Not Store) your Messages, Photos, Contacts, Calendars, Notes and Reminders. Note that iCloud Storage is NOT an extension of storage capacity of your iPhone. Just wanted you to know some facts.

Having said that, you can choose to Optimize Storage on your iPhone for all the Photos. What this action will do is store your original quality photos on iCloud and a small size photo on your iPhone. This takes up less space on your iPhone while maintaining the actual size on iCloud. This will free up space on your iPhone while making good use of iCloud. If you would like to try this then open Settings ➔ Photos ➔ Optimize iPhone Storage : Ensure that this option is chosen and has a checkmark on it.

Axel F.

That is correct. You could have 47TB of iCloud space and it would still not change the fact that you cannot increase the storage of the iPhone from what it is when you purchase it. iCloud is syncing space, it does not increase the amount of space on the iPhone. See this to understand the difference between iPhone storage and iCloud storage. What's the difference between device storage and iCloud storage? - Apple Support

It would be better if you can please re-post with a screenshot, in order to understand the phenomenon better. Images/pictures speak louder than words. Do not provide any personal credentials, such as email id, apple id, IMEI number, Serial Number, Phone number, Order ID, if you are sharing a map ensure your location is not identifiable. Etc.