Phillips was born in Albany, Georgia, to Sheryl (Jacks) and Phillip LaDon "Donnie" Phillips, Sr., and moved to Leesburg, Georgia when he was 12. He has two older sisters, LaDonna, the eldest, and Lacey. Phillips grew up in Sasser and Leesburg, and attended Lee County High School. He graduated from Albany Technical College with a major in Industrial Systems Technology, but missed the graduation ceremony due to his obligations to American Idol.

Phillips auditioned in Savannah, Georgia. He sang "Superstition" by Stevie Wonder. The judges then asked him to perform a second song with his guitar, and he performed Michael Jackson's "Thriller." He advanced to the Hollywood rounds, and later to the Las Vegas round. On February 23, 2012, Phillips was chosen as one of the Top 25 semi-finalists, and was then voted into the Top 13.  His performance style on the show has been compared to Dave Matthews, and he covered one of his songs, "The Stone," in the competition. When asked about Phillips' imitation of his style, Dave Matthews said: "More power to him, I don't mind," and added "He should kick my ass, [then] maybe I can retire and he can take over my band." Mentor Stevie Nicks said Phillips would have been good enough to join Fleetwood Mac back in 1975, after his performance of Jonny Lang's Still Rainin, which he received a standing ovation from the judges.  After the Top 13 performance night, Phillips was taken to a doctor for possible kidney stones. He had eight procedures while he was on Idol, and considered quitting the show due to the pain.  For his Top 3 performance, Phillips sang Bob Seger's "We've Got Tonight." For Top 4, he did a cover of Damien Rice's Volcano - which has been heralded as one of the best American Idol performances of all time. As the sole contestant who was never in jeopardy of elimination in any week of the competition, Phillips became the winner on the finale against Jessica Sanchez after a record-breaking 132 million votes were cast. His coronation song, "Home," was released after his performance, and had the biggest digital sales week for any Idol winner's coronation song.  ^Note 1 Due to the judges using their one save on Jessica Sanchez, the Top 7 remained intact for another week.

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