Thai Peanut Butter Sauce with Coconut Milk is a breeze to make and is super versatile. It comes together in under 10 minutes using a few simple ingredients. Use this creamy umami-packed sauce as a dip, dressing, or marinade (vegan, can be easily made gluten-free).
Here are some more homemade sauces that you might like – Bechamel Sauce, Gochujang Dipping Sauce, Lemon Garlic Butter Sauce, Peri Peri Sauce, Harissa Sauce, and Thai Sweet Chilli Sauce.

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About Peanut Butter Sauce
This Thai Peanut Butter Sauce with Coconut Milk is a delicious condiment that can be easily made at home using a few ingredients in under 10 minutes.
It is a super versatile sauce and can be stored for a long time in the refrigerator.
Although it’s called Thai peanut sauce, it actually originated in Indonesia where it is also known by the name of “satay sauce”, as it is mostly served on the side with chicken satay.
Apart from serving it as a dipping sauce, you can use this sauce in a multitude of ways. I have mentioned some options in the post below.
Thai Peanut Sauce is easily available in stores these days but the homemade version is always better – It is fresh, made with high-quality ingredients, there are no added preservatives or colors and it is bursting with incredible umami flavors.
This recipe is vegan and you can easily make it gluten-free. You can easily half, double, or triple the recipe too. My measurements will give you approximately 1 cup of sauce.
Ingredients

You will find all the ingredients in the Asian aisle of any grocery store.
This sauce requires a few basic ingredients like coconut milk, creamy peanut butter, dark soy sauce, rice vinegar, brown sugar, garlic, and fresh ginger.
Replace soy sauce with tamari or coconut aminos for a gluten-free version.
How To Make Thai Peanut Butter Sauce
Whisk together
- ½ cup coconut milk
- ½ cup unsweetened creamy peanut butter
- 1 tablespoon rice vinegar
- 2 tablespoons dark soy sauce
- 2 tablespoons brown sugar
- 1 teaspoon minced garlic
- 1 tablespoon grated ginger
in a saucepan.

Cook over medium heat and bring to a simmer, stirring frequently.

Reduce the heat to low and cook, stirring often so it doesn’t scorch, for 2-3 minutes.
Add ½ cup water and cook for another minute.
Add some more warm water if you want a thinner sauce.
Remove the pan from the heat and let the sauce cool slightly.
Transfer it to a container or jar, cover it, and keep it in the refrigerator for up to 2 weeks. Use as desired.

Frequently Asked Questions
Replace soy sauce with tamari or coconut aminos for a gluten-free version.
If you are allergic to peanuts, then replace peanut butter with cashew butter, tahini, or almond butter.
Pro Tips By Neha
Reduce the amount of soy sauce for a milder sauce.
Adding a teaspoon of red curry paste or massaman paste also adds to the flavor of this sauce.
Adjust the ingredients of the sauce to make it sweeter, saltier, or spicier.
Usage Ideas
Apart from using this sauce as a dipping sauce with spring rolls or satay, I like to use it as a sauce for my noodles, dressing for salads, and even in my stir fry.
You can also drizzle it over roasted veggies, crispy tofu, or lettuce wraps.
Thin it a bit and use it as a salad dressing.
Marinate chicken breast with this sauce and grill until done.
Slather some on rolls for a tasty treat.
Storage Suggestions
You can keep this sauce in the fridge for up to 15 days. Make sure you store it in a clean and dry air-tight container and use a clean spoon every time you use the sauce.
This peanut sauce is freezer-friendly as well. Transfer the sauce to a freezer-safe box and freeze it for up to 3 months.
You can also freeze it in ice cube trays. Just thaw a few cubes over the counter for a few hours or microwave them until it comes to room temperature when you want to use them.
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Recipe Card

Thai Peanut Butter Sauce Recipe With Coconut Milk
Ingredients
- ½ cup coconut milk
- ½ cup unsweetened creamy peanut butter
- 2 tablespoons dark soy sauce (use tamari for gluten-free)
- 1 tablespoon rice vinegar
- 2 tablespoons brown sugar
- 1 teaspoons minced garlic
- 1 tablespoon grated ginger
- ½ cup warm water
Instructions
- Add all the ingredients except water to a saucepan and whisk until combined.
- Cook over medium heat and bring to a simmer, stirring frequently.
- Reduce the heat to low and cook, stirring often so it doesn’t scorch, for 2-3 minutes.
- Add water and cook for another minute.
- Add some more warm water if you want a thinner sauce.
- Remove the pan from the heat and let the sauce cool slightly.
- Transfer it to a container or jar, cover it, and keep it in the refrigerator for up to 2 weeks. Use as desired.
Erin Thompson
What is the serving size for this?
Neha Mathur
This recipe will make approximately 1 cup sauce.