Peanut Satay Sauce (Indonesian–Malaysian Peanut Sauce)

By @saucesanddips | Creamy, Savory-Sweet Sauce for Skewers, Noodles, and Bowls

Peanut Satay Sauce is a classic Southeast Asian condiment that’s creamy, nutty, and balanced with sweetness, heat, and tang. Traditionally served with grilled satay skewers, it’s also fantastic with noodles, grain bowls, and fresh veggies.

Ingredients (Makes about 1½ cups)

¾ cup natural peanut butter (or 1 cup finely ground roasted peanuts)
1 cup coconut milk (full-fat or light)
1½ tablespoons kecap manis (or 1 tablespoon soy sauce + 1 teaspoon brown sugar)
1 tablespoon soy sauce (or fish sauce for non-vegan)
1–2 tablespoons palm sugar or brown sugar (to taste)
1 tablespoon lime juice (plus more to taste)
1 tablespoon red curry paste or 2 teaspoons sambal oelek (heat to taste)
2 garlic cloves, finely grated
1 teaspoon finely grated fresh ginger
¼–½ cup water (to thin as needed)
Pinch of salt, to taste

Instructions

1. Bloom the Aromatics
In a small pot over medium heat, stir curry paste (or sambal), garlic, and ginger with a splash of coconut milk for 30–60 seconds until fragrant.

2. Build the Sauce
Whisk in the remaining coconut milk, peanut butter, kecap manis, soy sauce, and sugar. Stir until smooth.

3. Simmer & Adjust
Cook gently 3–5 minutes, adding water a little at a time to reach a dipping or pouring consistency. Off heat, stir in lime juice and salt to taste.

4. Serve
Let rest 5 minutes to thicken slightly. Serve warm or at room temperature.

Serving Ideas

Classic with grilled chicken, beef, or tofu satay
Toss with rice noodles and steamed greens
Use as a dip for fresh spring rolls or raw vegetables
Drizzle over grain bowls or roasted sweet potatoes

Tips from @saucesanddips

For extra nuttiness, toast peanuts first and grind; or add 1 teaspoon toasted sesame oil
Thin with warm water or coconut milk right before serving if it thickens
Make it vegan by using soy sauce only (no fish sauce)

Tag your recreations with #saucesanddips and follow @saucesanddips for more regional classics.