[3] During the mid-1970s, Phillips left West Virginia for California, embarking on a cross-country trip that would lead to numerous jobs, experiences, and encounters that would greatly affect her fiction, with its focus on lonely, lost souls and struggling survivors.

In 1976, Truck Press published her first short story collection Sweethearts, for which Phillips earned a Pushcart Prize and the Coordinating Council of Literary Magazines Fels Award.

Black Tickets is mentioned in the 2006 lectures for the Modern Scholar series installment From Here to Infinity, by Professor Michael D. C. Drout, who refers to her style—which he asserts was a direct influence on William Gibson's 1984 cyberpunk novel Neuromancer—as a "headlong rush of story and description".

[4] Called "the unmistakable work of early genius" by Tillie Olsen, Black Tickets was praised by Raymond Carver: "These stories of America's disenfranchised – men and women light-years away from the American Dream – are quite unlike any in our literature ... this book is a crooked beauty."

[citation needed] In 1984, Phillips published her first novel, Machine Dreams, "a remarkable novelistic debut and an enduring literary achievement," according to the New York Times.

No number of books read or films seen can deaden one to the intimate act of art by which this wonderful young writer has penetrated the definitive experience of her generation."

Called "a rich, vivid novel of moral and psychological complexity destined to stand alongside works by Faulkner and other Southern masters" (Vanity Fair) and "a defiant, frighteningly beautiful novel as disturbing as its setting, Shelter feels like Phillips' bid for immortality" (Harper's Bazaar), Shelter was awarded an Academy Award in Literature by the American Academy and Institute of Arts and Letters.

[citation needed] Phillips' next novel was MotherKind (2000), winner of the Massachusetts Book Award, a story of intergenerational love and struggles within a family facing many changes.