Delicious Homemade Peanut or Satay Sauce

by Ishani Bose last updated -

If you are someone who is a Thai food aficionado, satay sauce or peanut sauce is definitely something you have come across. Peanut sauce is a quintessential ingredient in not only Thai but also the Malaysian and Indonesian cuisine. Satay sauce, (which it is popularly known as in South East Asia), is often used as a salad dressing, or a dipping sauce and goes well with chicken, meat and vegetables. It is typically made from ground roasted or fried peanuts, and in some cases made using peanut butter as well. You can try out our recipe below and pair it with some grilled chicken skewers to make for an interesting meal.

How to Make Satay Sauce?

In America, satay sauce is often made using peanut butter, which although tasty, is far from the authentic Thai or Pan Asian peanut sauce that we devour at restaurants. If you wish to replicate the original satay sauce, it is almost imperative to use whole, freshly roasted peanuts, which is first ground and then simmered with other ingredients to give it a fresh and genuine taste.  The flavor of the peanuts blends in intricately with the spice flavors that are added and together make for a flavorful sauce/salad dressing or a dip.  So what are we waiting for? Let’s take a look at the recipe below.

Delicious Satay sauce placed in a bowl atop a table, next to groundnuts and onions

How to Make Homemade Peanut or Satay Sauce?

Enjoy the creamy, spicy and flavorful taste of this peanut sauce!
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Course: Dip/ Salad Dressing/ Sauce
Cuisine: Thai, Malaysian, Indonesian
Keyword: Satay Sauce
Appliance: Food Processor
Prep Time: 5 minutes
Cook Time: 15 minutes
Total Time: 20 minutes
Author: Ishani Bose


  • 1 cup fresh and dry peanuts
  • 2-3 cloves garlic (minced)
  • 2 tsp sesame oil
  • 1/2 tsp dark soy sauce
  • 1/3 cup water
  • 2 tbsp brown sugar
  • 1/3 cup coconut milk
  • 1/2 tsp cayenne pepper/ Thai chili sauce (change measurements as per taste)
  • 1-2 tbsp fish sauce (for non-vegetarians) (adjust as per taste)
  • 1.5-2.5 tbsp regular soy sauce (for vegetarians)
  • 1/2 tsp tamarind paste/lemon juice


  • To make satay sauce, combine all the ingredients in a food processor and blend well. 
  • Blend the mixture well until the sauce develops a smooth consistency. If you want the sauce to be more watery, add extra water or coconut milk to it. Keep tasting the sauce as you prepare it so that you can change the proportions of the coconut milk/water and add the ingredients as per your preference. 
    Delicious satay sauce placed in a white bowl, ready to be devoured
  • Once done, serve satay sauce warm or at room temperature with delicious grilled chicken skewers. Juicy strips of chicken soaked in a flavorful Asian marinade and dipped in an equally appetizing satay sauce is all you need to make for a delightful meal!
    Grilled chicken skewers soaked in flavorful Asian marinade, with a bowl of satay sauce kept on the side as a dip


  • After blending all the ingredients, if the mixture is too salty, add fish sauce or soy sauce to tone down the taste. 
  • You can also add a tsp of fresh lemon juice or tamarind paste if it's too salty. 
  • If it isn't too spicy, you can add cayenne pepper or Thai chili sauce. 
  • If you don't wish to consume the satay sauce right away, you can refrigerate it. This way it can stay for 2 weeks. If you wish to keep it for a longer duration, it would be advisable to freeze it. 

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About the Author

An alumnus of St. Xavier’s College, Mumbai, Ishani Bose has worked as a reporter/features writer for several leading newspapers and organizations in India. It was her love for food, health, and wellness that brought her to Organic Facts. She is also passionate about mental health and enjoys writing about it to educate more and more people about the same. She is an avid Instagrammer who knows the latest social media trends. When not writing or cooking, you’ll find her reading, traveling, soaking herself in music, arts, and culture in every way possible. Ishani has completed an online program on “Introduction to Food and Health” by Stanford University, US. Furthermore, she has completed an online course on “The Science of Wellbeing” by the Department of Psychology, Yale University.

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