Cold-Smoked Chili Powder Recipe

22. July 2025

Guest Blog Post. Amy is the Director of Marketing and Communications for Joe Lamp’l (AKA joegardener®). In her spare time she gardens and practices her nature photography in a small suburban backyard in Northeastern Oklahoma with her dog Scarecrow. Amy’s new website and blog Toad and Sage Garden is where she features her garden photography and writes about ecological gardening and growing herbs, vegetables, flowers, and native plants in a suburban backyard.

 

There hasn’t been a single gardening season where I didn’t grow peppers. Over the years, I’ve experimented with all sorts. From mellow and sweet to so hot and fiery that they made me question my life choices.  But one constant in every year is that when the pepper plants really start producing, I always harvest far more peppers than I can use fresh. That’s when I started coming up with creative ways to preserve them.

If you’ve ever grown more peppers than you can use fresh, or found yourself wondering what to do with a basket of end-of-season odds and ends, here’s a delicious solution I came up with a few years ago: homemade cold-smoked chili powder. It’s simple and endlessly customizable based on the peppers you have on hand. 

The best part? You don’t need a smoker or high heat. This is a cold smoke method, which infuses dried peppers with rich, smoky flavor without cooking them at all. I use a smoke tube that I bought many years ago similar to this one (but you can also use a pellet smoker maze) in a covered grill. But any heat safe container that will contain the peppers and the smoke will do the trick.

Why Cold-Smoke Your Own Chili Powder?

Homemade chili powder from cold-smoked peppers has a deeper, more complex flavor than store-bought, and it gives you full control over the ingredients. You can use all one type of pepper or mix and match whatever you’ve got on hand. Sweet banana peppers, jalapeños, poblanos, shishito, cayenne if you want a lot of heat—they all take on that warm, smoky character beautifully and add their own unique flavor profile. A jar of smoked chili powder adds a layer of kick to everything from soup to salad dressings and makes a great addition to your home grown herb and spice collection.

 

 

Step-by-Step: How to Make Cold-Smoked Chili Powder

Start With Fresh Peppers

Cold smoking works beautifully on fresh peppers. You can leave them whole with the stems on, or cut larger peppers into chunks to expose more surface area to the smoke. Either method has worked well for me, so choose based on your pepper type and how much you want them to absorb the smoky flavor. Just give them a quick rinse and pat them dry first.  Cut them into pieces if you want before placing them in your smoker setup. Keep in mind that these will be transferred to a dehydrator or oven for drying so it does help to cut them into uniform pieces now for drying later. 

 

Set Up for Cold Smoking

You don’t need a smoker for this—just a grill with a lid (gas or charcoal works), a metal cabinet, or any non-flammable outdoor setup where smoke can circulate while keeping the peppers contained to absorb the smoke.

Use a smoke tube or maze filled with your favorite wood pellets. I love using apple or cherry wood for a gentler smoke, but hickory or oak are great for a bolder flavor.

Place the smoking tube filled with pellets in your smoking set up. Lay horizontally and light the pellets at the open end using a torch or long lighter.  Let the flame burn for about 5 minutes until a good portion of the pellets are glowing and producing smoke. Blow out the flame—what’s left is a slow smolder that produces cool, flavorful smoke without enough heat to cook the peppers. 

Arrange the peppers on racks, trays, or a nonstick mesh grill mat nearby so smoke can flow around them. Close the lid and let the smoke do its work, checking occasionally to make sure everything is going smoothly and the tube is still producing smoke. 

Depending on the tube size and pellet type, you’ll get 2–6 hours of steady smoke. You’re not trying to remove moisture or cook them—just infusing flavor.

 

 

Dehydrate the Peppers

Once your peppers have been smoked, it’s time to dry them completely. This step is key to removing all the moisture so they can be ground into flakes or powder and stored without spoiling. If you haven’t already cut them into pieces, do that now and try to get all pieces close to the same size for even drying.  I arrange the peppers in a single layer on dehydrator trays and set the temperature to a low setting like 125°F. 

Let them dry until they’re crisp and brittle, which could take a full day or more depending on the pepper size and moisture content. If you don’t have a dehydrator, your oven on its lowest setting can work too. Before I treated myself to this 9-tray Excalibur dehydrator about 8 years ago, I used my oven for drying herbs and peppers, and it got the job done just fine.

 

Cool, Then Grind

Once smoked, let the peppers cool completely in a dry place. Then remove stems and grind the pods into powder using a spice grinder, coffee grinder, or blender. You can go longer for a fine powder or leave it a bit coarse, depending on how you like to use it.

Store your smoked chili powder in a clean, airtight jar in a cool, dark cabinet. Be sure to label your smoked chili powder. I like these pepper labels from CanningCrafts for this project. They really dress up the jars whether you are gifting this spice or just using it for your own collection.

Cold-smoked chili powder can hold its rich flavor for years, as long as all the moisture has been fully removed during drying. The key to long shelf life is making sure the peppers are completely crisp and brittle before grinding. Always store your finished powder in an airtight container, and check periodically for any signs of mold or spoilage. If you spot any, it’s best to discard or compost it and start fresh.

 

Decorate your jars with our Apothecary Pepper canning labels and Watercolor Pepper canning labels. The watercolor labels are also available with customized text.

 

Ways to Use Cold-Smoked Chili Powder

Add depth to soups, stews, and chilis

Just a small spoonful can bring a whole new dimension to a pot of soup or chili. It adds that slow-cooked, smoky flavor without needing actual smoked meat. I love to use it in any chili or soup that needs a little something extra. If you’re making bone broth or stock, add a teaspoon of smoked chili powder while it simmers. It will give it a subtle smoky undertone that comes through in any dish you make with the stock later.

Use as seasoning for roasted vegetables

Toss root veggies, cauliflower, or even chickpeas with olive oil and a pinch of smoked chili powder before roasting to bring a rich, savory warmth to the whole dish. It also goes well with sweet or starchy vegetables like carrots, squash, and potatoes.

Mix with salt, garlic powder, or herbs for a custom spice blend or grill rub

Create your own go-to seasoning by combining your smoked chili powder with flaky salt, garlic powder, oregano, thyme, or dried onion. Store it in a jar and keep it handy for seasoning anything from scrambled eggs to avocado toast. You could also use it on a custom BBQ rub gifted to a friend or family member that loves to grill. 

 

Decorate your jars with our Apothecary Pepper canning labels & shop our matching Apothecary Label Collection.

Stir into sauces or salad dressings

Whisk a little into vinaigrettes or creamy dressings to add depth and a hint of smokiness. It’s great in tahini sauce, chipotle-style ranch, or even stirred into barbecue or enchilada sauce for a smoky flavor boost.

Sprinkle into dips or onto popcorn for a smoky kick

Hummus, sour cream dip, or guacamole all benefit from a dusting of smoked chili powder. It can completely elevate the flavor. It also makes great popcorn seasoning.

Use in homemade pizza seasoning

Mix it into your favorite pizza seasoning blend. It pairs perfectly with dried basil, oregano, and garlic.  Or use it by itself the way you would pepper flakes - sprinkle it on top of pizza before or after baking for a boost of wood-fired flavor, even if you're just using a regular oven.

Smoked chili powder is one of those small-batch pantry staples that makes a big impact and it’s a great way to use up a bumper crop of peppers. It’s become a go-to seasoning in my garden-grown spice collection—and the one friends start hinting about as soon as pepper season rolls around. So go ahead and plant more peppers than you think you need (you were going to anyway), and have fun turning your harvest into this smoky, homegrown DIY spice.

 

Decorate your jars with our Apothecary Pepper canning labels & shop our matching Apothecary Label Collection.

 

Shop for Pepper Canning Labels

 

 

Read our blog post about how to Grow and Create Your Own Italian Seasoning Blend.

Read our blog post on How to Harvest & Eat Carrot Greens

 

Grow your own food! Get gardening tips, canning recipes & food preservation tips. Follow our Grow It, Can It, Eat It Pinterest Board.

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Have you made homemade chili powder before? If so, what is your favorite way to use it in the kitchen? Let us know in the comments below.

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