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Hatch Green Chile Gravy Recipe

Hatch Green Chile Gravy Recipe

Do you ever make Green Chile gravy for your holiday mashed potatoes and turkey? Or perhaps you like biscuits and gravy? Well here's a recipe we're sure all you chile-lovers will enjoy. We think this Green Chile Gravy is much better than traditional gravy, and you can make it deliciously vegetarian by using coconut oil and olive oil instead of dairy.

This is a great recipe to use with mashed potatoes or biscuits and gravy all year round, so don't just make it for the holidays. :) 

Hatch Green Chile Gravy Recipe



  • 4-6+ large fresh green chiles (Hatch, Anaheim, Big Jims, or Poblano  or you can also use pre-roasted frozen green chiles)
  • 2 tablespoons Butter (or use olive oil, or turkey/sausage/bacon drippings)
  • 1/2 onion, diced finely (about 1/2 cup)
  • 1-2 Cloves garlic, diced
  • 2 tablespoons flour
  • 2 cups whole milk (or use Coconut Milk)
  • Herbs (optional): add finely chopped fresh thyme, sage or parsley
  • Salt & Pepper to taste


Roast, peel, de-seed, and de-stem chiles (or use defrosted green chile from the freezer) chop up, set aside. Add chopped onions to skillet with oil/butter and cook them over medium heat until caramelized, add garlic and cook a little longer. Then sprinkle flour into skillet and stir for a minute until you get a roux, then add diced chiles and milk, bring to a boil, and simmer for 3-5 minutes until it’s thick. Enjoy!

Hatch Chile Gravy

Green Chile Gravy Recipe Variations:
To make this green chile gravy thicker and chunkier, add pre-fried chopped mushrooms and/or sausage. You can even mix in some additional hot peppers or even extra-hot peppers like the Carolina Reaper f you should fancy extra-hot gravy like some of us do! 


And... don't forget:

Hatch Chile Gravy Recipe for Mashed Potatoes on Thanksgiving


View more of our chile pepper recipes in our blog »