Preheat oven to 400°F and line a rimmed baking sheet with parchment paper.
In a large bowl combine: ground chicken, panko crumbs, parmesan cheese, olive oil, egg, dried minced garlic and onion, dried parsley, salt, and black pepper. Mix with hands until fully combined but being careful not to overwork the meat.
Using a medium size scoop or 2 tablespoons, make about 20 meatballs and place on prepared baking sheet.
Bake for 15-20 minutes until fully cooked or internal temperature is 160°F.
While the meatballs are baking, make the red sauce. In a large sauce pan, heat the olive oil over medium heat. Add the chopped onion and sauté for 5-6 minutes until soft and translucent.
Add the minced garlic and cook another minute and until fragrant.
Stir in the crushed tomatoes, Italian seasoning, oregano, basil, sugar, water, salt and red pepper flakes. Bring to a low boil, then cover, reduce heat to low and simmer for 10 minutes.
Once the sauce has simmered, remove 1 cup of the sauce to stir into the pasta if using.
When the meatballs are done, gently place them in the sauce and give them a gentle stir to coat them all. Then remove the pan from the heat.
Sprinkle the mozzarella cheese over the top, cover pan with lid and let sit until the cheese has melted.
Serve over pasta, in hoagie buns or plain as an appetizer.