Authentic New Mexican Red Chile Sauce
New Mexican red chile sauce is one of those simple but delicious toppings that often gets confused with enchilada sauce—yet it’s so much more. Simmer it a bit longer, and you’ve got Colorado Chile sauce. It tastes perfect with enchiladas, burritos, huevos rancheros, and tamales!

New Mexican red chile is rich in flavor and traditional. The red chile is a ripened green chile, the same pepper used when making Colorado green chile sauce. While it’s the same chile, the flavor and sauce are very different.
New Mexican red chile sauce is very thin. If you are looking for a thicker sauce, you can simmer the chile longer. The thicker version is Chile Colorado. I have also included directions on how to make this in the recipe card.
Red chile has a deeper flavor and uses fewer ingredients. The result is a rich flavor that is not overly complex. While I love green chile, New Mexican red chile is my favorite! Before I was vegan, I always put red chile sauce on top of huevos rancheros. But the fund did not stop there. I love it on enchiladas, as a base for Frito Pie, and in chile sauce. My husband loves to smother Crock Pot fried chicken in New Mexican red chile.
What is New Mexican Red Chile Sauce?
New Mexican Red chile sauce is typically made with hatch chilies that have ripened from green to red. The chiles are then fire-roasted, which intensifies the flavor. The sauce level can vary by pepper, but you can select your desired heat as a consumer.
Additional ingredients are added, and then the chiles are blended into a smooth sauce easily poured on top of enchiladas, burritos, tamales, etc. In our house, it is poured on top of almost everything or used as a dip for grilled cheese.
How to Select Which Type of Chile to Use

Red chiles come in four forms: dried, frozen, fresh, and powder. Of the four options, fresh and frozen are my favorite. The sauce comes out richer in flavor and thicker in texture. However, those options might not be available to you.
Form | Notes |
---|---|
Dried Chile Pods | Available at most grocery stores in the Hispanic section. Look for dried chili pods in clear packaging and hanging by their label. |
Frozen | It is available at most grocery stores in the Hispanic section. Look for dried chili pods in clear packaging hanging by their labels. |
Fresh Fire Roasted | In some larger cities in the west, you can find roadside stands in the early fall months where the chiles are fire-roasted on site. You can also order them online. |
Dried Powder | I do not recommend using dried red chile powder. The sauce will be very thin. |
Ingredients

- New Mexico red chile peppers – choose one of the following types:
- Dried chile peppers – 10-12 peppers
- Fresh fire-roasted – 20-24 peppers
- Pureed red chiles – 14 ounces, the equivalent of one 14-ounce tub of Bueno.
- Extra Virgin Olive oil – Adds a rich flavor to this recipe. You can substitute it with any neutral-flavored oil.
- White onion – Use a standard white onion. You can also use a yellow onion. I do not recommend using a red onion.
- Fresh garlic – Fresh garlic adds the pop of flavor you want to this sauce. You can substitute it with 1/2 teaspoon of garlic powder if you do not have fresh garlic.
- Vegetable Broth – I keep this recipe vegan and use vegetable broth. However, you can also use chicken broth. I do not recommend using pork or beef stock. The flavor is too strong for this sauce.
- Honey or Blue Agave – (optional) – I like to add a small amount of blue agave to offset any bitterness.
Read Before Working With Fresh Chiles
Fresh chile oil is hot and can stay on your hands for a day or two. I strongly recommend removing your contacts and wearing gloves. In my experience, this oil can stay on your hands for several days.

Instructions
Step One: Prepare the Chiles – Follow the correlating instructions for the chile type you are using:
- Option #1: Fresh Fire Roasted Chilies – Wear gloves, and use kitchen scissors to remove the stems and seeds. If there is a lot of char from the fire roasting, I also recommend removing that.
- Option #2: Frozen Chilie Puree – Allow the puree to thaw before moving to the next step.
- Option #3: Dried Chile Pods – Preheat oven to 350°F and heat 3 – 5 cups of water. Break the stems off and shake the seeds out from the pods. Place peppers in a single layer on a baking sheet. Roast for 2 to 5 minutes or until you smell the chilies roasting. Remove from oven. Place the chiles in the pot with hot water. Remove from heat and let the chiles soak for 30 minutes.




Step Two: Prepare the Onions –
Heat the olive oil in a saute pan until the oil starts to shimmer. Add the diced onion and saute over medium heat for 2 minutes. Add the garlic and a pinch of salt. Saute for one minute. Set aside.

Step Three: Blend –
Place the peppers, broth, and onion mixture in a blender until smooth. If the sauce is too bitter, you can add a teaspoon of honey or blue agave.

Step Four: Strain –
Place a mesh strainer or sleeve over a bowl and pour the chile sauce into the strainer to remove any seeds, onions, etc. Use a wooden spoon to help push as much sauce through the strainer as possible.

Step Five: Deeper Flavor/Chile Colorado-ish (Optional) –
Place the sauce in a medium-sized saucepan. Simmer on low heat for 30 minutes or until you reach your desired thickness.
Note: This sauce thickens surprisingly quickly, and I recommend watching it closely.
Different Ways To Enjoy Chile Sauce
Spicy red chile sauce is used on almost everything in my house. My husband uses it instead of hot sauce; I put it on nearly anything I eat, including my favorite vegan enchilada casserole. Here are more of our favorite dishes, which we top with New Mexican red chile sauce.
- Breakfast Burritos
- Burritos Casseroles
- Chili
- Eggs
- Empanadas
- Enchiladas
- Frito Pie
- Huevos Rancheros
- Potatoes
- Tamales
- Tostadas
Frequently Asked Questions
In the spectrum of chiles, the red ones are mild. However, spice is really up to personal preference. If you are concerned about spice, purchase mild peppers and only add half the recipe amount. You can add more peppers to increase the heat to your desired preference.
This recipe can be made vegan by replacing honey with blue agave.
The two are often confused. I have even confused the spellings within this blog. However, the two are very different. Here is the best way to keep them straight.
* Ending with an E – In the United States, the spelling with an “e” refers to the pepper. This pepper is the main ingredient and seasoning in green chile.
* Ending with an I – In the United States, the spelling with an “i” refers to stew. That stew is not made with chile peppers; instead, it is seasoned with various seasonings.
Refrigerator Storing Instructions: Store in a glass container or a mason jar for up to one week.
Freezer Storing Instructions:- Store in a freezer-safe container or bag for up to three months.
Did you make this? Leave a comment below and let me know how it turned out!

New Mexican Red Chile Sauce
Equipment
- Medium-sized pot with lid (optional)
- Baking sheet (optional)
Ingredients
- New Mexico red chile peppers* See notes for types and measurements.
- 1 tablespoon olive oil
- ½ white onion, diced
- 5 garlic cloves, minced
- 1 teaspoon salt
- 2 cups vegetable broth
Instructions
- Step One: Prepare the Chiles – Follow the correlating instructions for the chile type you are using:Option #1: Fresh Fire Roasted Chilies – Wearing gloves, use kitchen scissors to remove the stems and seeds. If there is a lot of char from the fire roasting, I also recommend removing that.Option #2: Frozen Chilie Puree – Let the chiles thaw before moving to step two.Option #3: Dried Chile Pods – Preheat oven to 350°F and heat 3 – 5 cups of water. Break the stems off and shake the seeds out from the pods. Place peppers in a single layer on a baking sheet. Roast for 2 to 5 minutes or until you smell the chilies roasting. Remove from oven. Place the chiles in the pot with hot water. Remove from heat and let the chiles soak for 30 minutes.
- Step Two: Prepare the Onions – Heat the olive oil in a saute pan until the oil starts to shimmer. Add the diced onion and saute over medium heat for 2 minutes. Add the garlic and a pinch of salt. Saute for one minute. Set aside.
- Step Three: Blend – Place the peppers, broth, and onion mixture into a blender and blend until smooth. Add a teaspoon of honey or blue agave if the sauce is too bitter.
- Step Four: Strain – Place a mesh strainer or sleeve over a bowl and pour the chile sauce into the strainer to remove any seeds, onions, etc. Use a wooden spoon to help push as much sauce through the strainer as possible.
- Step Five: Deeper Flavor/Chile Colorado-ish (Optional) – Place the sauce in a medium-sized saucepan. Simmer on low heat for 30 minutes or until you reach your desired thickness.
Video

Notes
- Dried chile pods – 10-12 peppers
- Fresh fire-roasted – 20-24 peppers
- Frozen Pureed – 14 ounces, the equivalent of one 14-ounce tub of Bueno.
Can i use chicken broth?
Hi Rosa, you absolutely can use chicken broth.
This was excellent! Just like I have had in New Mexico. I did add a can of roasted tomatoes to add some brightness and acid. It was perfect! I made chilaquiles with it and I’m craving it again today. Saving this as my go to recipe.
Awe, thank you so much Angela! I am so happy you liked it and are saving it as a go to recipe! It is a staple in our home.
Loved it replaced the sugar with a couple tablespoons honey and reminded me of my grandmothers
Hi, David,
Thank you so much for your comment, you made my day! I am going to have to make this with honey. That sounds better than sugar.
Ruth