Heat olive oil in a large pot or deep skillet over medium-high heat.
Add the chicken pieces and cook for 5-6 minutes until browned on all sides but not fully cooked through. Remove chicken from the pot and set aside.
In the same pot, add the chopped onion and cook for 3-4 minutes until softened.
Add the minced garlic and cook for 30 seconds until fragrant.
Stir in the dried Italian seasoning, salt, and black pepper.
Pour in the diced tomatoes with their juice and chicken broth, stirring to combine.
Add the uncooked penne pasta to the pot and stir to submerge the pasta in the liquid.
Return the browned chicken pieces to the pot and bring the mixture to a boil.
Reduce heat to medium-low, cover, and simmer for 15-18 minutes, stirring occasionally, until the pasta is tender and the chicken is cooked through.
Remove the pot from heat and stir in the grated Parmesan cheese and chopped fresh basil.
Serve immediately, garnished with additional Parmesan or basil if desired.