When sugar dissolves in water to form a sugar solution, the sugar disappears. However, the molecules of sugar remain intact and are distributed uniformly in the water. Also, the water molecules are not changed when sugar is dissolved in water to form a sugar solution.
We can easily get back the sugar by evaporation of water from the sugar solution. The evaporated water can then be condensed to recover the water also. Hence, it is a physical change and not a chemical change.