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.

I made this yesterday, however I only had Light coconut milk in (I normally purchase full fat) but I did not realize on the day of purchase, I had picked up 4 tins of light..Anyway just to say it is amazing….absolutely….yummmy…yummmy..maybe as I used light it is not so thick but wow..all the flavor, and yes coconut sugar..used..Thank you.
So glad to hear that light coconut milk still did the trick! Thanks so much for sharing your experience for other’s to reference – have a great day :)
Could I substitute date sugar for the coconut sugar?
Hi Heather – I haven’t experimented too much with date sugar so I’m not sure if it would work here. I’m not positive if it melts and caramelizes the way other sugars do. Wish I had a better answer – experiment at your own risk!
Hi, do you use canned coconut milk, and both the thick and watery parts? Thanks!
Hi Corali, yes you use the whole can of full fat canned coconut milk. Enjoy!
Is there a different sugar you would recommend besides coconut sugar?
I’ve only tried this with coconut sugar so I can’t make any other recommendations with confidence.
I just made this recipe and I enjoyed it over ice cream. Looking forward to trying it in iced coffee!
So glad you’re enjoying it, BC! Sounds amazing in coffee.
I made this and it is absolutely amazing! The perfect topping for brownies, ice cream, cinnamon rolls, and home-made samoas!
I used real whipping cream, and it taste amazing!
Your caramel was perfect. I adapted it just slightly since I have someone in the family on the AIP diet and it tasted FANTASTIC. I posted your recipe on my blog, linking it back to your site so credit is given where credit is due. Thank you so much for this recipe!!!
So glad you’re loving the caramel, Heather and were able to make it AIP friendly! Thanks for your feedback :)
Hi there, dam question, i know, but the measure for the coconut milk is a full standard can (aborto 400ml)?
Thanks
Dumb, not dam and about 400ml (my keaboard writes faster than me ;-))
Hi Marta, yes it’s a standard sized can!
The flavor of this caramel was lovely but when I put it in the fridge it separated and formed a hard layer from the coconut oil I imagine…did I do something wrong?
Hmm…you can always microwave it to reincorporate the coconut oil! Not sure why that would’ve happened.