This keto chicken chili with butternut squash is warming and cozy, packed with tender shreds of chicken, two different types of squash, aromatics and spices. It's a twist on a classic white chicken chili, but lighter, more broth-y, and made dairy-free.
Top it to your heart's content with your most-loved chili toppings. Because after all, that's what will really take this meal to off-the-charts YUM.

I've been enjoying squash lately. More than ever, in fact. It's the season for it - winter squash, at least- and I'm embracing it in my cooking and baking.
This keto chicken chili recipe uses chayote squash, are you familiar? I recently discovered it when developing a recipe for a client (a mock apple pie with the squash replacing the apples). I immediately loved its neutral taste and the endless possibilities for this low-carb squash variety.
So, it's included here, in this keto chicken chili. The squash resembles potato, and it naturally goes well with the butternut squash and chicken.
why you'll love it
My keto chili is a reader favorite (a family fave, too) and this keto chicken chili has a similar flavor but isn't as heavy. It's similar to my keto chicken tortilla soup, but creamier from the added coconut milk.
This low-carb chicken chili recipe is:
- easy to make
- gluten-free, dairy-free, paleo and low-carb/keto
- hearty and flavorful
the ingredients
This keto chicken chili recipe makes a large(ish) batch, but you can easily freeze a portion for another day, or simply scale down the recipe.
You will need:
- avocado oil
- onion, chopped
- large butternut squash, peeled and cubed
- chayote squash (sub zucchini)
- minced garlic
- chicken stock
- diced green chiles (canned)
- chopped jalapeño (optional- for extra heat)
- ground cumin
- dried oregano
- chili powder
- sea salt
- chicken breasts
- full-fat coconut milk (canned)
- fresh lime juice
- toppings like jalapeños, avocado, sour cream, cilantro
ingredient substitutions
Like most soups, there is room to riff here, so make it your own!
I've made this with 1-2 chipotle peppers in adobo sauce instead of diced green chiles and it works well either way.
If you can't source chayote squash, feel free to substitute zucchini.
And if you're not dairy-free and you don't have coconut milk, you can use heavy cream or whipping cream instead. Cream cheese (regular or dairy-free) is also a nice substitution and result in a thicker consistency that's closer to a true keto white chicken chili.
how to make keto chicken chili
- Sautè the veggies. In a large Dutch oven or soup pot over medium heat, pour in the avocado oil. Once it glistens, add the chopped onion, butternut squash, and chayote squash. Cook for about 5-8 minutes to soften the veggies a bit.
- Add the remaining ingredients. Add the garlic and cook another minute. Pour in the canned green chiles, spices, chicken stock, and spices. Drop in the chicken pieces (they should be whole- you'll shred them later).
- Simmer. Increase the heat and bring the soup to a boil. Once it boils reduce the heat to low and place the lid on the pot. Let the low-carb chicken chili simmer for about 20-25 minutes or until the chicken is cooked and the squash is tender.
- Shred the chicken. Pull out the chicken pieces and place them on a plate. Using two forks, gently shred the chicken. Return it to the pot. Stir in the coconut milk and the lime juice.
- Serve. Spoon the keto chicken chili into serving bowls and top with your favorite chili toppings.
recipe tips
- There's no need to peel the chayote squash but you should remove the seed that's in the center. Chayote squash also contains a type of sap that feels slimy to the touch and can irritate your hands if you don't rinse them right away (I've only experienced this once). It's most common when peeling the squash, but I still recommend washing your hands after handling it or using plastic gloves if you're concerned.
- Since all of the ingredients in this chicken chili are low-carb, you can make it more "keto" by adding high-fat toppings like sour cream and avocado.
- Chicken thighs are an okay substitute but they will not shred as easily as chicken breasts.
- For an extra spicy keto chicken chili, add an extra can of green chiles, chopped jalapeño, or chopped chipotle peppers (canned, in adobo sauce).
- Salt the chili to your own taste preference. I'll add 1-½ teaspoons of salt to start with. Before serving, taste the chili and adjust the saltiness and spiciness by adding more salt and chili powder if it needs it.
frequently asked questions
Does white chicken chili have a lot of carbs? While traditional white chicken chili is made with higher-carb ingredients like beans and corn, my low-carb chicken chili is not! It's a gluten-free, dairy-free and keto-friendly recipe that uses two varieties of low-carb squash and overall, makes a much lighter chili. In fact, it only has about 6 net carbs per serving!
Is chili OK for keto diet? Typically, no, since chili is usually packed with high-carb/sugar beans. However, a no-bean keto chili or this chicken chili with butternut squash are completely acceptable for a keto diet.
Enjoy this keto chicken chili recipe, friends! It's a warm and cozy way to embrace winter squash season.
you might also love...
- Keto cornbread, a gluten-free and grain-free recipe made with low-carb almond flour. It has a yummy, buttery flavor and is a breeze to whip up.
- Brussels sprouts slaw with roasted butternut squash is a crunchy mix of Brussels, arugula, and tender butternut. Sweet/spicy roasted pepitas and a mustard-y vinaigrette take this simple salad to the next level.
- Low-carb green chicken enchiladas make a hearty and flavorful family-style meal that will disappear fast!
Keto Chicken Chili with Butternut Squash (Dairy-Free)
This keto chicken chili with butternut squash is mildly spicy with maximum flavor! Shredded chicken, aromatics and two types of squash make this a cozy, wintry chili recipe that's also low-carb, dairy-free and gluten-free.
Ingredients
- 2 tablespoons avocado oil
- 1 yellow onion, chopped
- 1 large butternut squash, peeled and cubed (about 3-½ to 4 cups)
- 1 small chayote squash, pitted and cubed (about 1 cup)
- 2 teaspoons minced garlic
- 4 ounces diced green chiles, canned
- 1 quart chicken stock
- 1-½ tablespoons ground cumin
- 1 teaspoon dried oregano
- 1 tablespoon chili powder
- 1-½ teaspoons fine sea salt (plus more to taste)
- 1-¾ pounds chicken breasts (about 3 large pieces)
- 1 cup full-fat coconut milk or coconut cream, canned
- 1 lime, juiced
- toppings of choice, such as cilantro, sour cream, jalapeños and avocado
Instructions
- Place a Dutch oven or large soup pot on the stovetop over medium heat. Add the avocado oil to the pot and when it glistens, add the chopped onion, butternut squash, and chayote squash. Cook for 5-8 minutes, stirring occasionally.
- Stir in the minced garlic and cook another minute. Pour in the canned green chiles and chicken stock. Add spices and salt.
- Drop the whole chicken breasts into the broth mixture. Increase the heat to high and bring the soup to a boil. Once it boils, reduce the heat to low and place the lid on the pot. Let the chili gently simmer for about 20-25 minutes or until the chicken is cooked through and the butternut squash is tender.
- Remove the chicken pieces from the pot and place them on a cutting board or plate. Let them cool for a couple of minutes. Using two forks, gently shred the chicken. Return it to the pot.
- Stir in the coconut milk and the lime juice. Taste the chili and adjust the seasonings as needed, adding more salt or chili powder if it needs to be more spicy.
- Spoon the chili into serving bowls and top with your favorite chili toppings.
Notes
- There's no need to peel the chayote squash. When cutting it, you may notice a somewhat slimy sap. Rinse your hands after cutting chayote squash (or wear plastic disposable gloves while cutting) to remove any of that sap which can sometimes irritate the skin.
- For an extra spicy keto chicken chili, add an extra can of green chiles, chopped jalapeño, or chopped chipotle peppers (canned, in adobo sauce).
- Chicken thighs are an okay substitute for chicken breasts, but they won't shred as easily.
- If you can't source chayote squash, feel free to substitute zucchini.
- This recipe is dairy-free with the use of coconut milk. However, if you're not dairy-free, you can use heavy cream or whipping cream instead.
Nutrition Information:
Yield: 8 Serving Size: 1Amount Per Serving: Calories: 227Total Fat: 11gSaturated Fat: 5gTrans Fat: 0gCholesterol: 71mgSodium: 121mgCarbohydrates: 8gNet Carbohydrates: 6gFiber: 2gSugar: 2gProtein: 23g
This nutritional information is approximate and is provided for convenience as a courtesy.
Did you make this recipe? Let me know!