For beginning readers, systematic phonics provides the transferable system for reading unfamiliar words: connect graphemes with phonemes, blend through the word and apply the same knowledge to spelling. Strong evidence supports explicit, systematic phonics as an important foundation for early word reading.
The phrase “sight words” causes confusion because parents often use it to mean “common words a child should memorize.” In reading instruction, that bundles together several different ideas. A high-frequency word is simply a word that appears often. An irregular or common-exception word contains a sound–spelling relationship that is unusual or not yet taught. A sight word, in the broader reading-science sense, is a word the reader can recognize automatically without laborious decoding.
So the useful question is not “phonics or sight words?” It is: How should a child learn new words so that decoding becomes accurate and familiar words become automatic? The evidence-aligned answer is to build word reading through sound–spelling knowledge, while explicitly teaching the unusual parts of genuinely irregular words and giving enough reading practice for recognition to become efficient.