In a small saucepan, combine water and sugar over medium-high heat; stir until sugar dissolves. Remove from heat, and let cool completely.

In a shaker or 2-cup liquid-measuring cup, combine strawberries, basil leaves, vodka, and lime juice. Using a muddler or the back of a spoon, gently press strawberries and basil to release flavor. Stir in sugar mixture. Strain, and serve over ice. Garnish with basil leaves and strawberries, if desired.