New Mexico Green Chile Sauce

Once you try making authentic New Mexico green chile sauce at home, you’ll wonder how you ever lived without it. This bold, earthy, and slightly spicy sauce is a staple in Southwestern kitchens. 

It’s perfect over burritos, smothered enchiladas, scrambled eggs, roasted potatoes, burgers, or even stirred into mac and cheese. And with the right Hatch green chiles (fresh, frozen, or roasted), the flavor is unbeatable.

In this article, I’ll show you exactly how to make a rich, restaurant-style New Mexico green chile sauce from scratch.

Let’s start.

What Is New Mexico Green Chile Sauce?

New Mexico green chile sauce is a traditional chile-based sauce made with roasted Hatch green chiles, garlic, broth, onion, and a touch of flour for thickening. It’s usually served warm and ladled generously over anything from enchiladas to burgers.

Unlike green salsa or salsa verde, this isn’t something you dip chips in. It’s more of a gravy-like, savory sauce with a deep chile-forward flavor and just enough heat to keep things interesting. You’ll find it everywhere in New Mexico, from Santa Fe diners to Albuquerque food trucks.

Why Hatch Chiles Matter

The key to an authentic flavor lies in the chiles. Hatch chiles are grown in Hatch, New Mexico, and have a uniquely sweet-heat profile with a slightly smoky finish when roasted. You can find them fresh in late summer, frozen year-round, or canned in most grocery stores.

Tip: If you can’t find Hatch chiles, Anaheim or poblano peppers will do in a pinch, but if you want true New Mexican flavor, go for Hatch.

Ingredients You’ll Need

Here’s what you’ll need to make this green chile sauce just like a New Mexican grandma would.

Roasted Hatch Green Chiles

Use 1 to 1½ cups of chopped, roasted Hatch chiles (peeled and de-seeded). The heat can range from mild to extra hot. Choose according to your spice tolerance.

Garlic

2–3 cloves of minced or roasted garlic add punch and depth.

White or Yellow Onion

Use ½ of a medium onion, finely diced. It gives sweetness and body to the sauce.

Chicken or Vegetable Broth

1½ to 2 cups, depending on how thick you like the sauce. Chicken broth gives a savory base, but you can use veggie broth to keep it vegetarian.

Flour

1 tablespoon of all-purpose flour acts as the thickening agent. It creates that classic silky consistency.

Oil or Butter

Use 1 tablespoon of neutral oil (or butter for more richness) to start your roux.

Salt + Pepper

Start with ½ teaspoon of salt and a pinch of black pepper. Adjust to taste.

How to Make Green Chile Sauce (5 Simple Steps)

Step 1: Start with the Roux

In a medium saucepan, heat your oil or butter over medium heat. Add the flour and stir constantly for 1–2 minutes until it forms a light roux. This helps thicken the sauce and gives it a smooth, glossy finish.

Step 2: Add the Onion and Garlic

Stir in the diced onion and cook for about 3 minutes, until it softens. Then add the minced garlic and cook for another 30 seconds, just until fragrant. You don’t want the garlic to brown, just to release its flavor.

Step 3: Stir in the Chiles

Add your chopped roasted Hatch chiles. Stir everything together and let it sizzle for 1–2 minutes. This wakes up the chiles and lets the flavors meld.

Step 4: Pour in the Broth

Slowly pour in your chicken or veggie broth while stirring to avoid lumps. Bring it to a simmer and let it cook for 8–10 minutes, stirring occasionally. It should thicken slightly and become silky.

Step 5: Blend or Leave It Chunky

If you prefer a smooth sauce, blend it with an immersion blender. If you like texture (like I do), leave it chunky and rustic. Taste and adjust salt, pepper, and optional lime juice.

Serving Suggestions

Once your green chile sauce is ready, the real fun begins. You can pair the dip with these dishes.

Enchiladas

Green chile chicken enchiladas are a New Mexico classic. Roll up shredded chicken in tortillas, pour this sauce over the top, and bake with cheese.

Burritos & Smothered Dishes

Use it to smother a beef burrito or breakfast burrito loaded with eggs, bacon, and potatoes. 

Green Chile Stew

Add it to green chile stew for an extra punch of roasted flavor. Just stir a ladleful into your pot of pork, potatoes, and broth.

Eggs & Breakfast Dishes

Spoon it over scrambled eggs or drizzle it inside breakfast tacos. 

Burgers & Fries

New Mexicans love a good green chile cheeseburger. This sauce doubles as a spicy burger topping or even as a dip for fries.

Pro Tips for the Best Flavor

• Roast your own chiles for the most authentic flavor. Simply broil fresh Hatch chiles until blackened, then steam in a bag and peel.
• Use frozen Hatch chiles if fresh ones aren’t in season.
• Adjust heat by using mild or hot chiles.
• Don’t rush the simmer. Letting it cook a bit longer really develops the depth.

Conclusion

New Mexico green chile sauce is one of those recipes that you make once, then always have in your rotation. It’s earthy, spicy, and packed with the kind of depth you only get from real roasted chiles. 

So the next time you see Hatch chiles at the store, grab a bag and make this simple, flavorful sauce. Once you do, you’ll always keep a jar in the fridge.

FAQ

What’s the Difference Between Green Chile and Red Chile Sauce?

Green chile sauce is made with fresh or roasted green chiles and has a brighter, grassier flavor. Red chile sauce uses dried red chiles and has a deeper, smoky taste.

Can You Use Frozen Hatch Chiles for This Sauce?

Absolutely. In fact, many people swear by frozen roasted Hatch chiles because they’re picked and roasted at peak season.

What Dishes Pair Best With New Mexico Green Chile Sauce?

Aside from enchiladas and burritos, it’s great on grilled meats, potatoes, scrambled eggs, burgers, fries, and even mac and cheese.

Is This the Same as Green Enchilada Sauce?

Not exactly. While it can be used as enchilada sauce, it’s more savory and less tangy than canned versions.

Can I Make This Vegan?

Yes! Just swap chicken broth for veggie broth and use oil instead of butter.