SignificancePhosphorylation is essential for life. Phosphorylated molecules play diverse functions in cells, including metabolic (e.g., sugar phosphates), structural (e.g., phospholipids), and instructional (e.g., RNA and DNA). In nature, the phosphorylation of sugars via condensation is thermodynamically and kinetically unfavorable in bulk solution. Thus, a key question arising within prebiotic chemistry concerning the origin of life is, “How was phosphorus incorporated into the biological world?” Here, we show that sugar phosphates and a ribonucleoside form spontaneously in microdroplets, without enzymes or an external energy source. Sugar phosphorylation in microdroplets has a lower entropic cost than in bulk solution. Therefore, thermodynamic obstacles of prebiotic condensation reactions can be circumvented in microdroplets.