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5 from 7 votes

Thai Satay Peanut Sauce

An incredibly flavourful thai satay peanut sauce made by roasting and crushing our own peanuts and cooking down shallots and spices.
Prep Time15 mins
Cook Time20 mins
Total Time35 mins
Course: Condiments, Dip, Sauce
Cuisine: Thai
Servings: 3 cups
Calories: 499kcal
Author: Joyce | Pups with Chopsticks


  • 1 cup peanuts (unsalted, skinless)
  • 1 stalk lemongrass (approximately ¼ cup)
  • 3 x3 cm galangal (see notes)
  • 2 cloves garlic
  • 3 small shallots
  • 2-3 birds eye chili (finely chopped)
  • 2 teaspoon tamarind pulp (seeds and pulp removed)
  • 1 cup coconut milk
  • ¼ cup palm sugar
  • ¾ cup water (add more if you prefer a thinner sauce)
  • 2-3 tablespoon fish sauce
  • ½ lime (juiced)



Roast the Peanuts

  • Assuming you bought peanuts without the skin, throw them in a frying pan and give them a quick roast until they are toasty and brown. [If you bought shelled peanuts, shell them and toast them with the skin and once it cools you can rub the peanuts between your palms to remove the skin. They will not all fall out easily so it will be a bit more time consuming.]
  • Once they are toasted and brown, let them cool a bit. Then in a mortar and pestle crush the peanuts up finely. If you don’t have a mortar and pestle, you can either quick pulse it in a food processor or hand chop it finely.
  • Reserve 1-2 tablespoons of the finely crushed peanuts as a topping

Making the Sauce

  • Soak the tamarind pulp in a 3-4 tablespoons of water for a few minutes and then strain out the seeds and skins. (See notes for difference between tamarind pulp and concentrated tamarind paste)
  • Chop up the galangal, garlic, lemongrass and shallots and put it into a food processor and blitz it to it is almost a paste. If you don’t have a food processor you can chop them by hand but chop them up finely. The finer the chop the less chunks in the sauce.
  • In a pan, add some oil onto medium heat and brown the lemongrass, shallot, garlic galangal mixture.
  • Add in the chopped birds eye chili and continue to cook it in the pan for a few minutes.
  • Turn down the stove to low heat and add in the coconut milk, fish sauce, tamarind water, lime juice, and water and stir until combined.
  • Add in the palm sugar and peanuts and continue to cook for 10-15 minutes
  • If you find the sauce too thick, add some more water to thin it out.
  • Taste it and adjust the flavour. Is it salty, sweet or sour enough for you? Everyone has a different preference on how they enjoy peanut sauce. Adjust accordingly by tweaking it with lime juice, sugar or fish sauce.


  • Although galangal and ginger come from the same family they taste very different. Do not substitute the galangal for ginger if you don't have it. Omit the galangal from the recipe instead
  • Everyone's preference is always different when it comes to peanut sauce. Tweak it until it's perfect for you. To make it more sour, use some lime juice. To make it more sweet, use some condensed milk. To make it more savoury, add some more fish sauce.
  • Smooth or Chunky? This recipe will produces a hearty chunk sauce with peanut bits but if you enjoy a smoother sauce you can just throw it in the food processor and blitz it! ?
  • If you have concentrated tamarind paste, do not substitute it 1:1 to the tamarind pulp. I find the pulp has a milder flavour and the concentrated tamarind paste is VERY potent and sour. Start with ½ teaspoon of the concentrated tamarind paste, and do a taste test and add more if you like it more sour.


Serving: 1Cup | Calories: 499kcal | Carbohydrates: 29g | Protein: 14g | Fat: 40g | Saturated Fat: 18g | Sodium: 986mg | Potassium: 550mg | Fiber: 4g | Sugar: 14g | Vitamin C: 5mg | Calcium: 56mg | Iron: 4mg