Homemade Bourbon Butterscotch Recipe

My bourbon butterscotch recipe is sticky sweet with a hint of vanilla and oak. Made from 5 simple ingredients, it comes together in just 15 minutes and hasn’t failed me yet. With a rich sweetness that makes a little bit go a long way, it’s the perfect match for all of your fall sweets and treats. 

To me nothing says “fall” like the taste of butterscotch. Caramel, apples, and pumpkin do come close, but they just can’t outshine butterscotch in my book. Especially when it’s my homemade bourbon butterscotch sauce and maple French toast casserole.

It is sublimely rich with a unique flavor – partly from the dark brown sugar and partly from the underlying notes in the bourbon – that makes it a delicious topping for all your fall treats. Use it as dip for fresh apple slices. Drizzle it on roasted sweet potatoes or squash. Wrap it up and give it away as a homemade gift. You really can’t go wrong!

Bourbon Butterscotch Sauce Step-by-Step Video

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Directions to Make Homemade Butterscotch Sauce Recipe

• Melt the Butter: In a small saucepan over medium heat, melt butter until it becomes foamy and starts to brown slightly around the edges. This deepens the flavor.
• Add Brown Sugar: Stir in the brown sugar and continue to cooking, stirring occasionally. Watch for tiny bubbles forming at the edges—this is your cue that the sugar is dissolving and caramelizing. Make sure it doesn’t burn!
• Add the Cream: Carefully pour in heavy cream. The mixture will bubble up and expand rapidly—this is normal. Stir gently to combine.
• Add Flavor and Salt: Stir in the bourbon (or vanilla) and salt. Continue cooking, stirring occasionally to prevent burning. The sauce should thicken slightly and have a glossy finish.
• Remove from Heat: Once the mixture has tripled in size and thickened, remove the pan from heat. Let the sauce cool in the pan. It will continue to thicken as it cools.

Butterscotch vs Caramel:

In the world of culinary baking some of the biggest differences are a result of the smallest details. Take caramel and butterscotch for example. They both include sugar and butter, they both can be made in a variety of consistencies from a syrupy sauce to a hard brittle candy, and they both are sticky sweet and hard to resist. (In my world they are both better than chocolate, but that’s another topic for another day.)

Where they differ is in the type of sugar. Caramel uses white sugar, while butterscotch uses brown sugar. When I first created my bourbon caramel sauce, I thought that the dark brown sugar would give it a richer flavor. It did, but that one swap meant I was no longer making caramel. I was making butterscotch instead!  For more butterscotch, try my butterscotch apple crips and butterscotch peach crisp recipes. 

Why Bourbon Instead of Vanilla?

Have you ever noticed that store bought vanilla extract tastes awful? Did you know that it is required by law to taste awful? Thanks to prohibition, the bourbon I can buy in stores tastes better than any store bought vanilla extract, while still having many of the same underlying flavor components. With only 5 total ingredients in this sauce, that is important.

Most bourbon also has a similar alcohol content as vanilla extract. Bourbons usually fall around 40% – 45%, while vanilla extract is legally required to have a minimum of 35% and usually falls between 35% and 40% alcohol. This is also thanks to prohibition.

When baking with bourbon, the bourbon, like vanilla, is being used as a flavoring agent to enhance the existing flavors in the sugar, butter, and cream. This means you can replace it with vanilla (especially if you have a quality homemade version) or you can also choose to omit it. No, it won’t taste the same but if you don’t miss it, neither will your tastebuds. (*For more on how prohibition impacted vanilla, check out this BonAppetit article.)

If you are looking for more sweet bourbon recipe inspiration, check out my Kentucky Derby Mint Julep and Blackberry Bourbon Smash for bourbon cocktails. For bourbon dessert, try my Bourbon Caramel Popcorn, Salted Bourbon Caramel Shortbread cookies or Maple Bourbon Whipped Cream.

Storage Instructions 

Leftover bourbon butterscotch sauce can be refrigerated in an airtight container. It will firm up as it chills, but can be scooped while cold or reheated in 20 – 30 second increments in your microwave. WARNING: Select a storage container that gives the sauce space to double in size while reheating. If you do make a mess in your microwave, it cleans up easiest while still warm and a wet rag will melt any stuck on sugar.