With iOS 15, you can still track your iPhone through the Find My network even when the device is powered off. It seems that with iOS 15, even when your phone is turned off, it’s not completely shut down. Instead, it enters a super low-power mode and works like an AirTag, allowing any nearby iOS device to pick up its Bluetooth signal and send back its location.

This also means that if your iPhone runs out of battery, you still have a chance to find its location for a few more hours. In fact, Apple says the tracking feature will even keep working if the phone is reset to factory settings as long as Activation Lock is enabled.
“Locate your device using the Find My network even when it’s turned off. This can help you find a lost device if the battery is low or it may have been turned off by a thief,” Apple explains. Interestingly, Apple usually doesn’t promote Find My features as anti-theft tools.

Apple notifies users about this new feature with a warning popup when an iPhone running iOS 15 is about to run out of battery.
If you want to fully power off your iPhone, you can go into Settings and completely disable the Find My network feature.
Source: AppleInsider