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In a small pot, mix together the sugar and water. If using the vanilla bean pod, add it now.
Bring the mixture to a simmer over medium-high heat. Stir continuously until the sugar has dissolved.
Simmer the mixture for 2-3 minutes, then reduce the heat to low and simmer for an additional 5 minutes.
Remove the pot from the heat. If using vanilla bean paste or extract, add it now. Gently stir to combine.
Pour the syrup into a heat-proof airtight glass container. If using a vanilla pod, you can keep it in the glass container.
Let the syrup cool completely at room temperature before storing it in the refrigerator.