Refers to how something looks to an uninvolved observer, often contrasting with the view of those directly involved. Common in set phrases like 傍目八目 (a bystander's vantage point).
第三者 is a neutral 'third party,' whereas 傍目 emphasizes the viewpoint or judgment of someone not directly involved.
Etymology
Compound of 傍 (side) and 目 (eye), literally 'side eye,' referring to a sideways glance or the perspective of an onlooker. The alternate spelling 岡目 uses 岡 (hill) as ateji.