Add granulated sugar and water to a small saucepan. Place the saucepan over medium heat.
Stir the mixture gently until the sugar is completely dissolved and the liquid turns clear, about 2 to 3 minutes. Avoid letting it boil vigorously.
Once dissolved, remove the saucepan from the heat. Let the syrup cool to room temperature in the pan (about 30 minutes). Transfer the cooled syrup to a glass jar or bottle with a tight-fitting lid. Store in the refrigerator for up to 1 month.