This article explores the phonics approach as a key element in achieving high literacy outcomes in the early years. The English language is a phonetic language, meaning that spoken words are represented by strings of symbolic letters. It is made up of five elements; pragmatics, semantics, syntax, phonology and vocabulary. Phonology concerns the spoken sounds made in language of which the phoneme is the smallest component. Phonological awareness is an umbrella term that allows for introspective manipulation of words, syllables, and sounds. Important aspects of phonological awareness are intonation, stress, and timing (Hill, 2013). Children develop phonological awareness through oral interaction, literacy activities such as reading, and imaginative play. Phonemic awareness is the understanding that words are made up of sound sequences or phonemes. This develops through exposure to words, syllables, rhymes and alliteration. Phonics is a reading and writing teaching strategy that connects letters or written text to the sounds of language by developing phonemic awareness alongside alphabetic knowledge. Prominent authors in this field include Jeanne Chall and her pioneering work in: Learning to Read: The Great Debate, Marilyn Adams and her seminal book; Start Reading: Thinking and Learning About Print and Steven Stahl, who has written numerous books and journal articles. Phonics is a catalyst for recognition of long-term memorized words and increased vocabulary that ultimately allows the reader to make sense of visual texts. This helps to develop the alphabetical principle. Research shows that phonemic awareness and alphabetic comprehension, which are essential to phonics teaching, are the most important indicators of future reading and writing...... middle of article. ..... significantly improve their English literacy outcomes (Nishanimut, Johnston, Joshi, Thomas, Padakannaya, 2013). In summary, the role of a phonics approach in literacy development in the early years is important. However, it is important to note that it must be taught systematically and explicitly as part of an overall educational approach. It should be taught in conjunction with connected reading with the goal of developing phonemic awareness and alphabetic principle. The volume and intensity of training depends on what the child brings with him to the school environment. This may depend on the socio-cultural environment in which they live at home. The old notion of universal literacy is no longer acceptable. Teachers need to be more flexible in their approach and sensitive to student diversity in modern classrooms..