This Paleo Caramel Sauce is made with coconut milk and coconut sugar for a delicious, silky smooth sauce that’s refined sugar-free and vegan! It’s perfect as a Paleo substitute for caramel sauce in any recipe.

Today I have something delicious to talk about: caramel sauce. Normally a sugar-filled event, right? But this one has NO refined sugar. Instead, I subbed one of my new favorite ingredients: coconut sugar.

The more I bake with coconut sugar, the more I like it. It seriously performs so similarly to granulated sugar, but it tastes more like a strong brown sugar. I’ve found that I can usually substitute it in recipes as a substitution for both the granulated sugar and the brown sugar and it works out pretty darn wonderfully.
It has a caramelized flavor naturally, and it just so happens that that flavor works absolutely perfectly when you’re making caramel. This recipe is a little different than a traditional caramel sauce recipe where you first melt and caramelize the sugar and then add the heavy cream. That process usually takes less than 10 minutes.

Instead, for this recipe, you combine the coconut milk and coconut sugar and cook them down into a thick caramel sauce. This version of making caramel takes a little bit longer, about 30-35 minutes. But, it’s more hands-off and way less stressful.
I added a scraped vanilla bean to the caramel for a hint of delicious vanilla flavor to my caramel sauce. A similar flavor could be achieved with vanilla extract, but you won’t get the gorgeous vanilla bean specks in your caramel! If you don’t want to splurge on a vanilla bean to use in this recipe, vanilla bean paste works great. One jar will last you a while.

Whip up a batch of this caramel and eat it with some ice cream, or with some ice cream. Be sure to save some though – I have a delicious recipe using this caramel coming at you on Wednesday! I can’t wait to share it. It’s to die for! For now, enjoy the paleo caramel sauce!

Drizzle your vegan caramel sauce on…
- Gluten-Free Vegan Brownies
- Paleo Apple Crumble Pie
- Paleo Vegan Pumpkin Pie
- Gluten-Free Vegan Apple Crisp

Paleo Caramel Sauce
Ingredients
- 1 14 oz. can full-fat coconut milk
- ½ cup coconut sugar
- ½ vanilla bean, split and scraped, or 2 teaspoons vanilla extract
- 1 tablespoon coconut oil
- ½ teaspoon flaky sea salt or ¼ teaspoon sea salt
Instructions
- In a heavy bottomed saucepan, combine the coconut milk and coconut sugar. Scrape the insides of the vanilla bean and add the seeds and pod to the mixture, if using.
- Bring the mixture to a boil over medium heat, stirring frequently. Once boiling, turn the heat to low and let the mixture boil slowly. Stir frequently, scraping the bottom to make sure it doesn’t burn. Continue boiling until caramel has reduced and thickened to thick, syrupy texture, about 30-35 minutes. Remember that the caramel will continue to thicken as it cools.
- Remove from heat and stir in oil, salt, and vanilla extract if using. If you used the vanilla bean, remove the pod and discard.
- Let cool to room temperature, stirring occasionally to keep the fat incorporated. Pour into a glass container.
- Store in the refrigerator for up to 2 weeks.

yet another reason I need to get my hands on coconut sugar! This caramel sauce looks so indulgent and rich!
Thanks so much, Kayle!! You’ll love coconut sugar :)
Phenomenal recipe!! Absolutely love this caramel! Just found your blog & will definitely be trying other recipes in the future. :)
So glad you liked it!! Thanks, Chrissy.
This looks absolutely divine! I’ve been missing caramel sauce since we went Paleo and am trying this soon!
I am not paleo, but am refined sugar and gluten free. Can this recipe be used with heavy cream rather than coconut milk?
I have so much success with your recipes! Thanks!!
Hi Jennifer. Definitely, heavy cream will work perfectly! Enjoy :) so glad you’ve liked my recipes!
Can you use light coconut milk instead? I find that full fat coconut milk causes digestive upset sometimes.
Hi Linda. I haven’t tried it, and I’m a bit skeptical – similar to how milk won’t work for traditional caramel (you need heavy cream), I’m unsure if there’s enough fat in light coconut milk to thicken up. You could definitely give it a shot though. If you do, I’d love to hear if it turns out!
Thanks very much for this recipe – made it and used it between two layers of chocolate cake – yum yum :-)
Hey Rachel,
I’m making this today! Can I skip the coconut oil? I have some but it expired years ago. I now use it for my hair Can I use butter instead if some sort of oil is absolutely necessary? Thank you!
Hi Maryann, you can skip the coconut oil. Enjoy!
I love the flavor of this, but having no prior experience with sauces, I was unable to achieve the desired texture. Once it started to boil on medium heat, I was afraid it would stick to the pan to immediately lowered it to low heat for the duration of cooking. This caused it not to thicken up and remain very liquidy, but still added an amazing flavor and caramelized well in the Caramel Apple Crumb Bars that I made with this!
Hi Jasmine! You do need to cook it on a higher heat to get it to thicken up – it won’t stick to the pan even if you do :) I’m glad you enjoyed it regardless though!
Hi! Thanks for the great recipe! Just wanted to see if you could sub grass fed butter for the coconut oil?
Hi Sarah, absolutely! It would work perfectly :) enjoy!
I made this in the weekend and near lost my face in the p(l)ot!
This recipe is exquisite and now I can enjoy my vanilla ice cream with caramel again the way I used to.
Thank you very much from an over enthusiastic gluten head.
Awesome, so glad you enjoyed the recipe! Happy ice cream eating :)
l really want to try coconut sugar but have yet to find a brand made in a PN/TN-free facility. In the meantime, will this recipe work if I use raw sugar as a substitute for the coconut sugar?
I haven’t tried it with raw sugar so I can’t make any guarantees, but it should work just fine.