Peanut Sauce

Authentic and spicy peanut sauce with spices and rich taste. This homemade peanut sauce recipe goes well with chicken satay. This is the best peanut satay sauce you will find online!

Chicken satay with peanut sauce on a plate.

Chicken satay with peanut sauce on a plate.

Peanut Sauce Recipe

Peanut sauce is one of the most popular Asian dipping sauces. The sauce goes perfectly with chicken satay or beef satay.

My peanut sauce recipe is 100% homemade and authentic. It’s mildly spicy, made of aromatics, spices and dry roasted peanuts.

The amazing rich taste of this recipe is unmatched. It is the best recipe you’ll find online!

Peanut sauce in a dipping bowl.

Peanut sauce in a dipping bowl.

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Easy and best peanut sauce recipe with ground peanut and spices as ingredients.

Easy and best peanut sauce recipe with ground peanut and spices as ingredients.

How to Make Peanut Sauce?

This recipe is easy to make from scratch. It calls for the following ingredients:

  • Roasted peanuts
  • Palm sugar or sugar
  • Tamarind
  • Dried red chilies
  • Garlic
  • Shallots
  • Galangal
  • Lemongrass

The method is a three-step process. First, ground the roasted peanuts. You can use store-bought Planters Dry Roasted Peanuts.

Next, prepare and blend the spice paste.

To make the spicy peanut satay sauce, heat oil and fry the spice paste, then add the ground peanuts and water.

Add tamarind juice, sugar, sweet soy sauce and salt to season the sauce.

The dipping sauce is ready when the oil and the sauce separates.

Dry roasted peanuts for authentic peanut sauce.

Dry roasted peanuts for authentic peanut sauce.

Asian Peanut Sauce

This sauce is very popular in Southeast Asia; almost every country has its peanut dipping sauce recipe.

There is Thai, Vietnamese, Malaysian, Indonesian versions and so on but the BEST peanut sauce is found in Malaysia.

The recipe I am sharing today is the best of all. The taste is exquisite, rich and complex!

Once you try it, you will never go back to peanut butter sauce or any recipes using peanut butter as the main ingredient.

Spicy peanut sauce in a dipping bowl.

Spicy peanut sauce in a dipping bowl.

What Do You Eat with Peanut Sauce?

Peanut sauce is versatile and goes well with a variety of dishes.

Other than satay dipping sauce, you can use it as a salad dressing.

It tastes great on noodles and spring rolls, for examples: Goi Cuon Vietnamese fresh spring rolls and summer rolls.

It’s equally delicious on chicken, tofu, rice cakes and a variety of Asian dishes.

You can also use it in stir fry dishes.

Frequently Asked Questions

Can I Use Peanut Butter Instead of Ground Peanuts

For the best and authentic flavors, I don’t recommend peanut butter as a substitute.

How Do I Store Peanut Sauce?

You can store it in the refrigerator for up to a week. Make sure you store the sauce in a container or in a bowl tightly covered with plastic wraps.

To serve, just reheat the sauce in a microwave for 1 minute.

You can also freeze the sauce in the freezer. To serve, thaw the sauce to room temperature and reheat in a microwave.

How Many Calories Per Serving?

This recipe is 231 calories per serving.

What to Serve with this Recipe?

This dipping sauce is best served with chicken satay. You can also use the sauce for the following recipes.

Yield: 8 People

Peanut sauce

Authentic and spicy peanut sauce with amazing rich taste. This homemade peanut sauce recipe goes well with chicken satay. This is the best peanut satay sauce you will find online!

Prep Time 15 minutes

Cook Time 10 minutes

Total Time 25 minutes


  • 1 cup dry roasted peanuts, unsalted
  • 1 heaping tablespoon tamarind pulps
  • 1/4 cup vegetable oil
  • 1 cup water
  • 1/2 teaspoon salt or to taste
  • 2 1/2 tablespoons sugar, palm sugar preferred
  • 1 teaspoon coriander powder
  • 1 tablespoon sweet soy sauce (Kecap Manis)

Spice Paste:

  • 8 dried red chilies, seeded and soaked in warm water
  • 3 cloves garlic, peeled
  • 4 cloves small shallots or pearl onions, peeled
  • 1 stalk lemongrass, cut into 3 strips, use only 1 strip at the bottom
  • 1/2 inch galangal, peeled


  1. Crush the peanuts with mortar and pestle or use a food processor to ground the peanuts. Set aside.

    Ground peanut for peanut sauce.

  2. In a small bowl, add the tamarind pulps plus 1/4 cup warm water. Set aside for 15 mins. Squeeze and extract the juice from the tamarind pulp and discard. Keep the tamarind juice.

    Tamarind juice for peanut sauce.

  3. Chop the Spice Paste ingredients coarsely, transfer to a food processor and blend until very fine. Add a few tablespoons of water to help blending.

    Peanut sauce ingredients

  4. In a sauce pan, heat the oil on medium heat and add the spice paste.

    Peanut sauce spice paste

  5. Add the remaining two strips of lemongrass in the spice paste. Fry the spice paste until aromatic and smell spicy.

    Making peanut sauce in a sauce pan.

  6. Add the ground peanuts, water, tamarind juice, salt, sugar, coriander powder and sweet soy sauce. Stir to combine well.
  7. Reduce the peanut sauce on medium-low heat, stir continuously for about 5-10 minutes or until the peanut sauce thickens to your desired consistency, or until the oil and the peanut sauce separates.

    Peanut sauce in a saucepan.

  8. Let cool at room temperature and serve with satay.

    Peanut sauce with chicken satay.

Nutrition Information



Serving Size

Amount Per Serving Calories 231Total Fat 16gSaturated Fat 2gTrans Fat 0gUnsaturated Fat 13gCholesterol 0mgSodium 299mgCarbohydrates 19gFiber 3gSugar 11gProtein 6g

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