“How to Make Thai Chicken Satay with Homemade Peanut Sauce”

Thai chicken satay with homemade peanut sauce is an absolute classic of Thai cuisine, seen on street corners everywhere. Alongside the ever-popular pork satay, it’s a dish that children and adults alike can’t resist. Many recipes these days rely on peanut butter mixed with soy sauce—and even at culinary school, that was often how satay was taught.

But I remember, more than 50 years ago in culinary school, learning from a Malaysian chef how to make the authentic version with curry paste and real peanuts. That’s the approach I love for Thai chicken satay: using red Thai curry paste, tamarind water for a touch of tang, fish sauce, palm sugar, and coconut cream. It’s simple to make, yet the flavours are a mile ahead of the peanut-butter shortcuts.

Making your homemade peanut sauce from scratch takes very little extra time, and the reward is an incredibly rich, fragrant, and authentic taste. I encourage you to give it a go—you’ll quickly see that the effort is more than worth it, and your satay will be far more memorable than any shortcut could achieve.

Equipment you will need to make Thai chicken satay and peanut sauce

Mixing Bowl (for Marinating Chicken)
A large, sturdy bowl to hold chicken pieces while they soak up the satay marinade. Stainless steel or glass is best for easy cleaning and no flavor transfer.

Bamboo Skewers
Traditional bamboo skewers for threading marinated chicken. Soak in water before grilling to prevent burning and splintering.

Granite Mortar and Pestle
Essential for crushing roasted peanuts, grinding curry paste, or blending spices and herbs to release their full aroma and flavor.

Saucepan or Small Pot
Used to simmer coconut milk, curry paste, and other ingredients for the peanut sauce. A heavy-bottomed pot helps prevent scorching.

Wooden Spoon
Gentle on non-stick or stainless surfaces, ideal for stirring sauces, scraping the bottom of the pot, and folding ingredients evenly.

Ingredients required to make Thai chicken satay and homemade peanut sauce

Coconut Cream
Thick and rich, coconut cream gives the sauce its creamy texture and subtle sweetness, balancing the spices and peanuts.

Red Curry Paste
A fragrant blend of chilies, lemongrass, galangal, and spices that forms the bold, aromatic base of the sauce.

Palm Sugar
Traditional Thai sweetener with a mellow, caramel-like flavor that softens the heat and enhances the sauce’s depth.

Fish Sauce
Salty, umami-rich seasoning made from fermented fish; it adds complexity and a true Thai taste to the peanut sauce.

Tamarind Water
Slightly tangy liquid made by soaking tamarind pulp in warm water. It balances the sweetness and saltiness with gentle sour notes. See making tamarind water here

Peanuts
Roasted or freshly ground peanuts provide the signature nutty flavor and slight crunch, making the sauce rich and satisfying.

Preparing the Chicken Marinade

Make the Marinade
In a large mixing bowl, combine one tbsp fish sauce, one tsp sugar, one tsp ground turmeric and 100ml water. Whisk until the sugar dissolves.

Add the Chicken
Place chicken pieces (breast tenderloins or strips) into the bowl. Turn to coat each piece evenly in the marinade.

Marinate the Chicken
Cover and refrigerate for at least 30 minutes, or up to 3 hours for deeper flavor. This gives the chicken time to absorb the spices and stay juicy during cooking.

Skewers or No Skewers

• If using bamboo skewers, soak them in water for 20–30 minutes first to prevent burning on the grill.
• If using chicken breast tenderloins or strips, you can skip the skewers altogether — they’ll cook more evenly when laid directly on the grill or pan.

Cook as Directed
When ready, remove the chicken from the fridge and cook on a BBQ, grill or over coals.

How to make homemade peanut sauce

Heat the Oil and Coconut Cream
Add a little oil to a saucepan over low–medium heat. Pour in the coconut cream, bring to a gentle boil, then reduce the heat to a simmer. Cook until the coconut cream separates and thickens slightly. Stir frequently to prevent burning.

Fry the Red Curry Paste
Once the coconut cream has split, add the red curry paste. Cook for 2–3 minutes, stirring constantly, until fragrant and slightly darkened. You’ll know it’s ready when the raw aroma is gone and the paste smells rich and complex.

Add the Seasonings
Stir in the palm sugar and fish sauce, followed by the tamarind water. Bring the mixture back to a gentle boil and simmer until the palm sugar has completely dissolved.

Incorporate the Peanuts
Add the crushed peanuts to the sauce. Return to the boil briefly, then reduce the heat to low. Simmer for a few minutes until the sauce thickens to your desired consistency. Stir often to avoid sticking or burning.

Finish and Store
Taste and adjust seasoning if needed — more fish sauce for saltiness, more tamarind for tang, or more palm sugar for sweetness. Serve warm with satay skewers. The sauce can be made ahead and stored in the refrigerator for up to one week. Reheat gently over very low heat, adding a splash of water if it becomes too thick.

Frequently Asked Questions about Thai chicken satay and homemade peanut sauce

Q: Can I make the peanut sauce ahead of time?
Yes! The peanut sauce can be prepared up to one week in advance. Store it in an airtight container in the refrigerator and reheat gently over low heat, adding a splash of water or coconut milk if it becomes too thick.

Q: Do I have to use skewers for chicken satay?
Not necessarily. While skewers are traditional and great for grilling, chicken breast tenderloins or strips cook evenly without skewers. You can simply grill or pan-fry them directly.

Q: Can I use store-bought peanut butter instead of crushed peanuts?
You can, but the flavor will be different. Crushed roasted peanuts give a richer, more authentic taste and texture than peanut butter.

Q: How long should I marinate the chicken?
At least 30 minutes is good, but up to 3 hours will give a deeper flavor and juicier chicken.

Q: Can I adjust the spice level?
Absolutely. Increase or decrease the red curry paste to control the heat. Adding more coconut cream will also mellow the spiciness.

Q: Can I make this recipe gluten-free?
Yes — simply use a gluten-free fish sauce and check your curry paste ingredients to ensure they don’t contain gluten.

Q: What should I serve with Thai chicken satay?
It’s delicious with steamed jasmine rice, Thai cucumber relish, or a simple salad to balance the rich peanut sauce.

Bringing It All Together

“Making Thai Chicken Satay with homemade peanut sauce isn’t just cooking — it’s experiencing the aromas, flavors, and traditions of Thai street food. Serve it with jasmine rice and cucumber relish, recipe here for a meal your family and friends will love. Don’t forget to leave a comment or share your version — I’d love to hear how it turns out!”

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