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Introducing the most luxurious Vegan Butter Chicken! Made with fragrant toasted spices, coconut milk, tomatoes, and crispy, meaty oyster mushrooms, this vegan Indian-inspired comfort food dish is so comforting and satisfying that you’ll never make it with tofu again.
This post was originally published on November 29, 2023. It was updated with new recipe information and photos on June 18, 2025.
Like so many of my favorite Indian dishes, I thought I’d given up butter chicken when I became vegan. As plant-based as Indian cooking often is, dairy maintains a prominent spot in main Indian recipes. Luckily, it is possible to replace dairy with equally delicious and creamy plant-based alternatives like coconut milk and vegan butter, making a sauce that is lick-the-bowl delicious.
This vegan butter chicken is a spice lover’s dream. Get ready for layers of flavor married with a creamy red sauce and succulent, tender mushrooms. Sure, you replace the mushrooms with tofu, chickpeas, or “chikn,” but once you try it with oyster mushrooms, there will be no looking back!
Meaty oyster mushrooms have their own rich, savory flavor and meaty texture, which elevates this classic Indian-inspired dish. Not to mention, they are nutritious and incredibly easy to prep. I hope you’re hungry because vegan butter chicken has never been better!
For more delicious oyster mushroom recipes, check out my Mushroom Veggie Sliders, Pan-Fried Oyster Mushrooms, and Oyster Mushroom Vegan Scallops.
What is Butter Chicken?
If you’re new to butter chicken, get ready for a treat! Butter chicken is a traditional Indian curry made with tomatoes, spices, and––you guessed it––butter! Like many Indian dishes, this one starts with a blend of aromatic spices: coriander, cumin, cloves, nutmeg, ginger, chili pepper, and cinnamon.
To achieve a creamy, dreamy texture without butter or cream, I use coconut milk and a little bit of vegan butter. Traditionally, the marinated chicken is cooked in a clay oven, called a tandoor, before being added to the red gravy. Butter chicken is served piping hot over fluffy basmati rice and buttery naan bread. It’s the ultimate Indian comfort food, and thank goodness we can make it vegan.
All About Oyster Mushrooms
In addition to great texture, oyster mushrooms have natural umami flavor and a subtle sweetness that pairs wonderfully with the other ingredients in this dish. The best mushroom replacement for oyster mushrooms would be maitake, also known as Hen of the Woods mushrooms. After that, I would recommend using king oyster mushrooms, which are even meatier and can be shredded to mock chicken. Portobello and baby bella mushrooms can be substituted, but the flavor and texture are inferior to oyster mushrooms.
When you bring them home from the market, store mushrooms in a paper bag in the fridge.
Other Ingredients
Aromatics: A yellow onion and fresh garlic and ginger form the base of the flavorful sauce, adding sweet, nutty, and pungent notes.
Spices: You will need garam masala, Kashmiri chili powder, ground coriander, cumin, cloves, cinnamon, and cardamon. Find the garam masala and chili powder at an Indian grocer, well-stocked grocery stores, or online, and always use spices with a good expiration date for the best flavor.
Vegan Butter: Just 1 1/2 tablespoons add rich buttery flavor, without any of the dairy!
Tomato Sauce: One 14-oz can adds a jammy sweetness to the vegan butter sauce, complementing the spices. Be sure to grab pureed tomato sauce, not marinara.
Coconut Milk: This adds a rich, buttery taste and makes the sauce insanely luxurious and silky. My mouth is watering just thinking of it!
Salt and Sugar: Salt seasons the dish and cane sugar adds a light sweetness. You will need one teaspoon of each.
To Serve: I recommend spooning this vegan curry over freshly steamed basmati rice and garnishing it with chopped cilantro, lime juice, and lime zest (if desired). Serve bowls hot with vegan naan bread for the ultimate comfort food experience!
How to Make Vegan Butter Chicken
Measure the spices, heat the skillet, and get ready for your kitchen to smell amazing! Here’s how to make this vegan butter chicken recipe:
- Trim the Mushrooms. Oyster mushroom caps are held together at their base by a tough, partially edible stem. Use your fingers to identify where the stem feels toughest, and use a sharp knife to remove that portion without slicing off the caps. If you are unsure, just remove the bottom 1/6″ of the stalk.
- Prep the Ingredients. Measure the spices, pulse or mince the aromatics, and open the cans of tomatoes and coconut milk.
- Sauté Aromatics. Heat one tablespoon of the vegan butter in a Dutch oven or large pot over medium-high heat. Add the onion mixture and sauté until fragrant and slightly golden, about 3-5 minutes.
- Toast Spices. Add the spices and toast, stirring frequently, for 30 seconds.
- Simmer Butter Sauce. Pour in the tomato sauce, coconut milk, sugar, and salt. Stir well until combined. Bring to a simmer, then reduce the heat to medium or medium-low. Cover the pot and let it gently simmer for 20-30 minutes.
- Press Oyster Mushrooms. While the sauce simmers, make the oyster mushrooms. Warm 1/2 tablespoon of vegan butter in a large, heavy-bottomed pot or skillet over medium-high heat. Place the mushrooms, cap side down, onto the skillet and sprinkle them with salt. Place another heavy pot, skillet, or bacon press directly onto the mushrooms, allowing it to compress them. Reduce the heat to medium and cook for 5 minutes. The mushrooms will start to release water and cook down.
- Season and Finish Mushrooms. Remove the mushroom press and season the mushrooms with garam masala, garlic powder, and Kashmiri chili powder. Place the press back onto the mushrooms and cook on medium or medium-low heat for 20 minutes, until the mushrooms are tender, fragrant, and golden around the edges. Transfer the cooked mushrooms to the pan of vegan butter chicken sauce, remove the pan from the heat, and cover.
- Serve. Spoon the vegan butter chicken hot over steamed basmati rice and garnish it with chopped cilantro, lime juice, and lime zest (if desired). Serve hot with vegan naan and enjoy!
Jenné’s Recipe Pro-Tips
- Use quality spices. If in doubt, look for garam masala, Kashmiri chili powder, and the other spices at your local Indian grocery store or online.
- Prepare and measure the ingredients before starting. The cooking process can go quickly. Ensure that it goes smoothly by having all your ingredients measured and ready before turning on the stove.
- Use a heavy-bottomed pot. If you have one, a cast iron or other heavy-bottomed pot or skillet is best for getting the mushrooms nice and crispy.
- Pulse the aromatics in a food processor. Although you can mince the onions, garlic, and ginger by hand if you don’t have a food processor, pulsing them in one blends them into a paste-like texture that will give the final sauce the silkiest texture.
Storage Directions
- Refrigerating: Store leftover vegan butter chicken in an airtight container in the refrigerator for up to 5 days.
- Freezing: Once cooled to room temperature, transfer the butter chicken to a freezer-safe container and store in the freezer for up to 2 months. Defrost it in the refrigerator overnight before reheating.
- Reheating: Reheat the vegetarian butter chicken in the microwave on gentle heat or in a saucepan over medium-low heat for 3-5 minutes until hot.
More Vegan Indian-Inspired Recipes
- Instant Pot Tempeh Tikka Masala
- Air Fryer Indian-Inspired Sweet Potato Tacos
- Sweet Potato Red Lentil Curry
- Black Eyed Pea Curry
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Vegan Butter Chicken
Equipment
- bacon press optional
Ingredients
Vegan Butter Sauce
- 1 medium yellow onion
- 3 cloves garlic
- 1 inch knob of fresh ginger
- 1 1/2 tsp garam masala
- 1 tsp Kashmiri chili powder
- 1/2 tsp ground coriander
- 1/2 tsp ground cumin
- 1/4 tsp ground cloves
- 1/4 tsp ground cardamom
- 1/4 tsp ground cinnamon
- 1 tbsp vegan butter
- 1 14 oz can tomato sauce
- 1 1/2 cups full-fat coconut milk, unsweetened
- 1 tsp salt
- 1 tsp cane sugar
- 4 servings cooked basmati rice, for serving
- 4 servings vegan naan bread, for serving
- black pepper to taste
- fresh cilantro, to garnish
- fresh lime juice and lime zest, to garnish
Oyster Mushrooms
- 1/2 tbsp vegan butter
- 1 1/2 lbs oyster mushrooms, tough stems removed, or remove the bottom 1/6" (see note)
- sprinkle of salt
- 1 tsp garam masala
- 1/2 tsp garlic powder
- 1/2 tsp Kashmiri chili powder
Instructions
Vegan Butter Sauce
- Before you start, prep all the ingredients: measure the spices, pulse the aromatics, open the cans of tomatoes and coconut milk, and trim the mushrooms.
- Add the onion, garlic cloves, and ginger to a food processor and pulse until it is a thick paste. If you don't have a food processor, mince the aromatics together until they are finely minced and combined.
- Heat one tablespoon of the vegan butter in a Dutch oven or large pot over medium-high heat. Add the onion mixture and sauté until fragrant and slightly golden, about 3-5 minutes.
- Add the spices and toast, stirring frequently, for 30 seconds.
- Pour in the tomato sauce, coconut milk, sugar, and salt. Stir well until combined. Bring to a simmer, then reduce the heat to medium or medium-low. Cover the pot and let it gently simmer for 20-30 minutes.
Oyster Mushrooms
- While the sauce simmers, make the oyster mushrooms. Warm 1/2 tablespoon of vegan butter in a large, heavy-bottomed pot or skillet over medium-high heat. Place the mushrooms, cap side down, onto the skillet and sprinkle them with salt. Place another heavy pot, skillet, or bacon press directly onto the mushrooms, allowing it to compress them. Reduce the heat to medium and cook for 5 minutes. The mushrooms will start to release water and cook down.
- Remove the mushroom press and season the mushrooms with garam masala, garlic powder, and Kashmiri chili powder. Place the press back onto the mushrooms and cook on medium or medium-low heat for 20 minutes, until the mushrooms are tender, fragrant, and golden around the edges. Transfer the cooked mushrooms to the butter chicken sauce, remove the pan from the heat, and cover.
- Spoon the vegan butter chicken hot over steamed basmati rice and garnish it with chopped cilantro, lime juice, and lime zest (if desired). Serve hot with vegan naan and enjoy!
Notes
- Refrigerating: Store leftover vegan butter chicken in an airtight container in the refrigerator for up to 5 days.
- Freezing: Once cooled to room temperature, transfer the butter chicken to a freezer-safe container and freeze for up to 2 months. Defrost it in the refrigerator overnight before reheating.
- Reheating: Reheat the vegetarian butter chicken in the microwave on gentle heat or in a saucepan over medium-low heat for 3-5 minutes until hot.
- Use quality spices. If in doubt, look for garam masala, Kashmiri chili powder, and the other spices at your local Indian grocery store or online.
- Prepare and measure the ingredients before starting. The cooking process can go quickly. Ensure that it goes smoothly by having all your ingredients measured and ready before turning on the stove.
- Use a heavy-bottomed pot. If you have one, a cast iron or other heavy-bottomed pot or skillet is best for getting the mushrooms nice and crispy.
- Pulse the aromatics in a food processor. Although you can mince the onions, garlic, and ginger by hand if you don’t have a food processor, pulsing them in one blends them into a paste-like texture that will give the final sauce a silky texture.
Your detailed instructions also make it easy for even beginners to whip up this dish. It’s fantastic to see how creative vegan cuisine is becoming so accessible. Thank you for sharing your culinary expertise with us!
Looking forward to trying out this recipe in my own kitchen.
an amazing, full of taste recipe!