Malaysian Satay Peanut Sauce

4.84 stars

Satay peanut sauce is a dipping sauce usually served with grilled skewered meat or compressed rice known as 'nasi impit' in the Malay language. This authentic savoury peanut sauce is sweetened with palm sugar and has a very subtle hint of sourness.

Preparation 20 mins
Cooking 50 mins


Satay Sauce, Kuah Kacang

Malaysian, Singaporean, Thai, Indonesian

Nutrition per Serving

469 kcal
38 g
32 g
16 g

Satay sauce which is also called peanut sauce is a popular dip or gravy known worldwide. Often accompanied with grilled skewered meat (satay), the very mildly spicy yet sweet sauce with a subtle hint of sourness goes really well with skewered meat. Due to the freshly pounded peanuts in the sauce, it easily coats the marinated grilled meat. This delicious satay sauce cannot be compared with peanut sauces which uses peanut butter. The best satay peanut sauce must have a good balance of all the flavours namely sweetness, spiciness, sourness and savouriness to tantalize your taste buds.

This recipe has been tried and tested numerous times by viewers with very positive feedback.

Difference in Malaysian satay sauce

Since satay is available in many Southeast Asian countries, it is understandable that there are many variations of satay and peanut sauce. However, Malaysian satay sauce does not contain coconut milk or ingredients such as soy sauce or fish sauce.

Tips to remove the skin of peanuts

As shown in the video, the peanuts are soaked in water to soften its skin. That way, it would be easier to remove the skin. You can also fry the peanuts in oil. After that, wrap the peanuts with a clean kitchen towel and rub them among each other. The skin will fall off during the process. To save the hassle, roasted peanuts without skin can also be used.

Should I increase the amount to make more?

Yes! Just be mindful to constantly stir the sauce especially if you plan to double or triple the amount of ingredients. This is to prevent the sauce from being burned. Having the right proportion of ingredients would ensure a truly amazing and delicious peanut sauce.

How to store satay sauce?

Satay sauce can be made in advanced and kept refrigerated for up to 5 days. Otherwise, store it in the freezer for up to 6 months. Thaw the peanut sauce before using. You can either steam or microwave it shortly before serving.

This peanut sauce is certified delicious and is a must-try. My friends renamed this recipe, “Grace’s awesome peanut sauce” because of its delectable taste and has given it a two thumbs up! Give it a shot and tell me what you think.


300 g
lemongrass stalk(s)
3 cm
garlic clove(s)
chilli peppers (dried)
3 tbsp
400 ml
1⁄4 tsp
60 g
palm sugar (gula melaka)
1 tsp
tamarind paste

Steps to Prepare

Malaysian Satay Peanut Sauce Step 1

Step 1 of 4

    • 300 g peanuts

Toast peanuts in a pan without oil until fragrant. Remove skins by soaking them in a bowl of water. Then, blend/crush peanuts into a grainy texture and set aside.

Malaysian Satay Peanut Sauce Step 2

Step 2 of 4

Blend lemongrass, galangal, garlic and dried chillies. In a pan, heat oil over medium heat to fry sliced shallots. Once shallots begin to change colour, add the blended ingredients and sauté until fragrant.

Malaysian Satay Peanut Sauce Step 3

Step 3 of 4

    • 400 ml water
    • 1⁄4 tsp salt

Add blended/crushed peanuts, water and a pinch of salt. Mix well and increase heat to allow the sauce to boil.

Malaysian Satay Peanut Sauce Step 4

Step 4 of 4

    • 60 g palm sugar (gula melaka)
    • 1 tsp tamarind paste

Once the sauce boils, add 'gula Melaka' (palm sugar) and allow it to simmer over low to medium heat. After 20 minutes when the sauce thickens, add tamarind paste. Add sugar to taste (optional).

Published: December 12, 2014

5 Discussions

2 months ago

Robert Brooks

How long does it take, after the chilli paste goes in, for the oil to separate? We can never get it to happen, not sure if we’re leaving it too long or not long enough?

2 months ago

Mira - Community Happiness Manager

In this recipe, it should take about 15 minutes. Did you use enough oil?

3 months ago

Akash dao

Did you soak the dried chilies first ? Thank you

3 months ago

Akash dao

Also did you de seed them or keep the seeds in

3 months ago


Yes, always soak. Depends on the spiciness on the chillies, you can leave the seeds in or not. Here is a full guide on handling dried chillies:

10 months ago

Kathy Chong

Can I use regular sugar instead of palm sugar? I don't want to go out looking for it during the pandemic. Thanks!

10 months ago

Mira - Community Happiness Manager

For sure! Upload a food snap to show us the result.

a year ago


Hello, I want to try this but I cannot find tamarind in my store. What can i use instead? Thank you

a year ago

Mira - Community Happiness Manager

Lime, lemon or vinegar. Add to taste.

a year ago


Thank you :)

a year ago

Nisha Parekh

I just made the sauce mine was a very thick consistency where it was too dry I don't know how to make it better I just continue to add more water and it never turned out to look like yours at all. Do I weight the crushed peanuts or whole peanuts as i think 300g dried soaked and then crushed is too much also my paste was not red at all. Please advise

a year ago

Mira - Community Happiness Manager

The paste in Step 2 should be red. Did you use small dried chillies? Was the paste sautéed until fragrant? It changes into a deeper shade of red when it turns fragrant. Weight the 300g dried peanuts first, then soaked them. The final dish should not be red but brown/yellow. Adding water is the right thing to do if it's too dry. Cook the sauce over low heat for the flavours to emerge.

a year ago

Nisha Parekh

Thank Mira

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