Malaysian Peanut Sauce
Peanut sauce has many versions from many different countries but the one I was most familiar with was a peanut butter mixed with some curry powder, lime juice and soy sauce making an incredibly simple peanut sauce.
So imagine my surprise when I went on a trip to Malaysia and ordered peanut sauce and it was very different to the peanut sauce that I knew but 10x more delicious!!
Malaysian peanut sauce is made with whole peanuts that are ground but not made into a paste so they add some texture, some aromats such as galangal ( a milder version of ginger) and lemongrass. All toasted in oil making the most heavenly flavourful and deeply savoury sauce that is far from the peanut butter version I was used to.
This is now my favourite recipe for peanut satay sauce.

As always after finishing a trip I am full of inspiration from what I ate, I come home and start to make my own versions of the foods.
You can buy shop bought Malaysian satay but nothing beats the flavour of homemade and being able to control exactly what goes in to your food is a bonus! No preservatives or unnecessary chemicals.
Malaysian satay sauce often has fish sauce or shrimp paste so not usually vegan so here I use vegan fish sauce making this a vegan peanut satay sauce.
This sauce is perfect for dipping satay skewers, or using as a sauce for sandwiches. You can even make it into a satay curry sauce or dressing by adding some coconut milk.
If you love big flavour youโll really love this peanut sauce so give it a try!
What makes this peanut sauce vegan?
Traditionally Malaysian peanut sauce has fish sauce or shrimp paste for a savory, umami flavor. For a vegan version I use vegan fish sauce that is made from seaweed. You could also blend half a sushi nori sheet into the paste for the same fishy/ savory flavor.

What to serve with peanut sauce
The obvious pairing would be Vegan Chicken Satay Skewers but this sauce is incredibly versatile. You could spread it on a sandwich or mix with a little coconut milk to reach salad dressing consistency. A personal favorite alternative use of mine is to add a can of coconut milk and simmer to create a peanut curry sauce, perfect with some fluffy white rice as a great weeknight meal.
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Ingredients you'll need for peanut sauce
- Whole peanuts- Raw, skin on peanuts (not roasted)
- Dried chillis
- Garlic- Raw garlic, no garlic powder here!
- Onion
- Vegan fish sauce
- Tamarind paste
- Sugar
- Lemongrass- Raw, not dried
- Galangal- Raw or paste.

Is Malaysian peanut sauce spicy?
This sauce has 5 dried chilis but the flavor is more smokey and less sharp heat than raw chilis so the sauce isn't too spicy. However if you like it spicy you can use hotter dried chilis or raw chilis. If you don't like spice at all you can use bell pepper instead of chilis to give the sauce its color.
How to make vegan Malaysian peanut sauce



- Soak the chilis in boiling water
- Toast the peanuts in a pan
- Blitz the peanuts in a food processor



- Blend the rest of the ingredients
- This makes the sauce paste
- Fry the sauce paste in oil



- Fry until the oil separates
- Add the peanuts and some water
- Simmer for 10- 15 minutes.
- Serve and enjoy
How to store and reheat peanut sauce
Once you make the sauce you can keep the leftovers in a sealed container or jar as you would with Thai curry paste and keep in the fridge for up to a week.
When you are ready to use it again it will have thickened. To make it thinner add to a sauce pan and add water or coconut milk gradually whilst on a low heat stirring until your desired consistency has been reached and the sauce has heated through.

Malaysian Vegan Satay Sauce
Ingredients
- 150 g Whole peanuts
- 5 Dried chillis
- 5 Garlic cloves
- 1 Onion
- 1 tbsp Vegan fish sauce
- 1 tsp Tamarind paste
- 1 tsp Coriander powder
- 1 tsp Sugar
- 1 stick Lemongrass
- 1 inch Galangal
Instructions
- Soak the chillis in boiling water
- Toast the peanuts in a hot pan tossing continuously for 5 minutes.
- Leave to cool.
- Once cooled blitz into a breadcrumb size and set aside.
- Add the rest of the ingredients to the blender and blend until a paste has formed ( you may need to add a little water as you go).
- Coat a frying pan with some oil and add the paste.
- Cook for a few minutes on medium heat then add the peanuts.
- Add 200ml water stir well and put on low heat to simmer for 10 minutes.
- Serve and enjoy.
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