Preheat oven to 400 degrees F.
If you’re making homemade marinara sauce, see details below.
To make the meatballs, in a large bowl, combine the ground chicken, breadcrumbs, ½ cup of the parmesan cheese, water, egg, garlic, onion powder, ½ teaspoon salt, and ¼ teaspoon black pepper.
Mix well and shape the mixture into 12 meatballs (or smaller meatballs if you’re making the dish as an appetizer).
Pour 1 cup of the marinara sauce into bottom of baking dish or cast-iron pan.
Arrange the meatballs in the sauce. Pour over the remaining marinara sauce.
Top the sauce with the mozzarella cheese and remaining ¼ cup of parmesan cheese.
Bake, uncovered, for 25 to 30 minutes, until the internal temperature of the meatballs reaches 165 degrees F. If desired, place the pan under the broiler to brown the cheese.
Top with basil, if using, and serve.