This post may contain affiliate links. Please read our disclosure policy.
This chili oil chicken and rice is a bold, savory bowl packed with ground chicken, onions, water chestnuts, and a creamy chili oil peanut sauce served over buttery jasmine rice. It’s rich, slightly spicy, and incredibly satisfying while still coming together in about 30 minutes.

Behind This Chili Oil Chicken & Rice Recipe
Some of my favorite meals are the ones that come together quickly but still deliver mouthwatering flavor, and this chili oil chicken and rice definitely exceeded my expectations. The sauce is a mix of savory soy sauce, sweet chili sauce, honey, and peanut butter with a kick of chili oil, which coats the chicken in a rich, slightly spicy glaze.
The water chestnuts add a little crunchy texture that makes every bite more interesting, and spooning the saucy chicken over warm jasmine rice turns it into the perfect cozy bowl. It’s the kind of dinner that feels comforting but still packed with bold flavor that will quickly make its way into your regular meal rotation.

Tips From My Kitchen
- Brown the chicken first. Let it cook undisturbed before breaking it up to build flavor.
- Use low heat for the sauce. Too much heat can cause the peanut butter and oil to separate.
- Whisk the sauce well. This helps the peanut butter melt smoothly into the sauce.
- Don’t skip the lime juice. It brightens the richness of the sauce.
- Serve over buttery rice. The sauce soaks into the rice beautifully.
- Swap the protein. Don’t have chicken on hand? Ground Italian sausage works amazingly with these flavors.
Ingredients You’ll Need and Why
Each ingredient helps build the flavor of this chili oil chicken and rice bowl.
- Ground chicken – Lean protein that absorbs the sauce beautifully.
- Onion – Adds sweetness and savory depth to the chicken mixture.
- Soy sauce – Brings salty umami flavor to the sauce.
- Rice wine vinegar – Adds tangy balance to the rich sauce.
- Peanut butter – Creates a creamy, savory base for the sauce.
- Sweet chili sauce – Adds sweetness and mild chili flavor.
- Chili oil – Brings heat and depth to the dish.
- Garlic – Adds aromatic flavor to the sauce.
- Water chestnuts – Provide a crisp texture that contrasts the soft chicken.
- Jasmine rice – The perfect fluffy base for soaking up the sauce.
How to Make Chili Oil Chicken and Rice
Start by cooking your rice so it’s ready when the chicken finishes.
Prepare jasmine rice according to package instructions and stir in a little butter while it’s warm.
Cook the Chicken
Heat a large skillet over medium heat and add sesame oil and butter.
Add the diced onion, ground chicken, minced garlic, onion powder, garlic powder, salt, and pepper to the pan.
Let the mixture cook undisturbed for 1–2 minutes to begin browning.
Break the chicken apart with a spatula and spread it into a single layer. Cook for about 3 more minutes, then flip and continue cooking until the chicken is fully cooked.
Transfer the chicken and onion mixture to a bowl and cover loosely with foil to keep warm.


Make the Chili Oil Sauce
Reduce the heat to low and use the same skillet.
Add soy sauce, rice wine vinegar, peanut butter, sweet chili sauce, minced garlic, honey, chili oil, onion powder, garlic powder, and lime juice.
Whisk the mixture gently until the peanut butter melts and the sauce becomes smooth and combined. Then whisk in the chicken stock until it comes together into a sauce then bring to a simmer.



Combine the Chicken
Return the chicken mixture to the skillet along with the drained water chestnuts.
Stir everything together until the chicken is fully coated in the sauce.
Let the mixture simmer for 2–3 minutes until warmed through and the sauce thickens slightly.



How to Serve and Store Leftovers
Serve the chili oil chicken hot over freshly cooked jasmine rice. Garnish with extra chili oil, green onions, peanuts, or sesame seeds if desired.
Store leftovers in an airtight container in the refrigerator for up to 4 days. Reheat gently in the microwave or on the stovetop with a splash of water to loosen the sauce.

Looking for More Easy Asian-Inspired Recipes?
Peanut Chili Oil Noodles
Caramelized Onion Pasta with Chili Oil
Gochujang Chicken Bowls
Sticky Jalapeno Chicken
Beef and Broccoli
Thai Peanut Chicken Noodles
I hope you enjoyed this Chili Oil Chicken & Rice recipe. I look forward to your questions and feedback below.
Please be sure to tag me @BadBatchBaking using hashtag #badbatchbaking if you made this recipe and I will feature you on my story! Plus, I LOVE to see your baking accomplishments.
Chili Oil Chicken & Rice Recipe

Ingredients
Chicken
- 1 lb ground chicken
- 1 onion diced
- 2 cloves garlic minced
- 1 tbsp sesame oil
- 1 tbsp butter
- 1 8 oz can water chestnuts, drained and minced
- ½ tsp onion powder
- ½ tsp garlic powder
- ½ tsp salt
- ½ tsp black pepper
Sauce
- 4 tbsp soy sauce
- 2 tbsp rice wine vinegar
- 3 tbsp peanut butter
- 2 tbsp sweet chili sauce
- 2 cloves garlic minced
- 2 tbsp honey
- 1-2 tbsp chili garlic oil plus more for serving
- Juice of 1 lime
- 1/3 cup chicken stock
- optional: chopped peanuts and sesame seeds for topping
- Cooked jasmine rice plus a few tbsp butter for rice
Instructions
- Cook jasmine rice according to package instructions. Stir in butter while warm and set aside.
- Heat sesame oil and butter in a large skillet over medium heat.
- Add diced onion, ground chicken, minced garlic, onion powder, garlic powder, salt, and pepper. Cook undisturbed for 1–2 minutes.
- Break up the chicken and spread it into a single layer. Cook about 3 minutes, flip, and continue cooking until fully cooked breaking it up into small pieces.
- Transfer the chicken mixture to a bowl and tent with foil.
- Reduce heat to low. In the same skillet add soy sauce, rice wine vinegar, peanut butter, sweet chili sauce, garlic, honey, chili oil, and lime juice.
- Whisk until the peanut butter melts and the sauce becomes a smooth paste. Whisk in the chicken stock and bring to a simmer.
- Return the chicken mixture to the pan along with the drained water chestnuts.
- Stir well and simmer 2–3 minutes until everything is heated through.
- Serve over warm buttery jasmine rice with sesame seeds, extra chili oil, cilantro, and chopped peanuts.








