Keto Caramel Sauce

I originally created this keto caramel recipe for my homemade keto Twix bars, but I quickly realized it deserved a spotlight of its own. It makes the perfect keto caramel sauce for topping low carb ice cream, any keto desserts, or spooning straight from the jar.

Plus, It only uses 3 ingredients. This truly is the easiest caramel sauce I’ve ever made!

Why This Keto Caramel Recipe Is So Good

Here’s why I keep making this keto caramel on repeat, and why I think you’ll love it too:

1. Just 3 Ingredients… Seriously.

No need for fancy tools or ingredients. No xanthan gum. All you need is butter, allulose, and cream. That’s it!

2. It Actually Tastes Like Real Caramel

This keto caramel sauce has that deep, buttery richness you want in a classic caramel recipe. No weird texture. No cooling effect. No compromise.

3. It’s Incredibly Versatile

Use it warm as a keto caramel syrup, chill it for chewy keto caramel candy, or add to homemade keto candy bars. You can also swirl it into desserts, top baked goods, or package it up in jars to give as gifts.

Ingredient Breakdown

Let’s take a look at exactly what goes into this 3 ingredient caramel sauce recipe and why each ingredient matters.

Butter

Butter is the base of this caramel, adding a rich, creamy flavor and that golden brown hue as it browns. I usually use salted butter, but if you only have unsalted, just add a pinch of salt (about 1/4 teaspoon) to taste. The butter also helps with emulsifying the sauce and creating that luscious caramel texture.

Granulated Allulose Sweetener

This is the key to making this keto caramel recipe work. Allulose behaves almost exactly like real sugar when heated—it melts, browns, and thickens into a smooth syrup without crystallizing. Erythritol or other sugar substitutes won’t give the same glossy texture and can leave a gritty or icy aftertaste. I’ve tested this recipe with several different brands of allulose, and they all work great.

Heavy Cream

Heavy cream brings everything together. It adds body, richness, and a creamy mouthfeel. As the mixture simmers, the cream helps thicken the sauce while keeping it silky smooth.

How to Make Keto Caramel

This recipe comes together in under 20 minutes, and once you make it once, you’ll be hooked. Here’s exactly how to make keto caramel sauce at home.

Step 1: Melt the Butter

Start by melting the butter in a saucepan over low to medium heat. Stir occasionally to keep it from browning too quickly. You want it fully melted but not browned just yet.

Step 2: Stir in Allulose

Once the butter is melted, add the granulated allulose and stir until fully dissolved. This may take a few minutes.

Step 3: Add Heavy Cream

Pour in the heavy cream (and salt if using) and give everything a good stir. Raise the heat slightly to medium, and bring the mixture to a gentle simmer.

Step 4: Simmer and Reduce

Continue simmering the caramel mixture for 10–15 minutes, stirring occasionally. It will begin to thicken, darken, and foam up. The caramel will turn a deep golden brown and begin to reduce. Keep an eye on it, especially near the end, to prevent burning.

Step 5: Remove from Heat and Cool

Once your keto caramel reaches that rich golden color and glossy texture, remove the pan from the heat. As it cools, stir it occasionally to keep the texture uniform. The foam will naturally subside, and the sauce will continue to thicken.

Tips for Success

1. Stick With Allulose

It really is the only sweetener that works perfectly for this recipe. Allulose caramelizes like real sugar and creates that essential syrupy texture. Avoid substituting with erythritol or monk fruit blends—they won’t give the same results.

2. Don’t Rush the Simmer

Allowing the sauce to simmer long enough is key to that rich flavor and thickness. If you stop too early, it may stay too runny. If you go too long, it can burn. Watch the color—it should be a deep golden brown.

3. Stir As It Cools

Once off the heat, stirring the caramel as it cools helps maintain an even, glossy texture and prevents separation.

Keto Caramel Flavor Variations

Want to mix things up? Try these keto caramel recipe variations:

Vanilla Bean Keto Caramel

Add ½ teaspoon of vanilla extract or a pinch of vanilla bean powder after removing from heat for a warm, bakery-style flavor.

Salted Keto Caramel

Stir in a generous pinch of flaky sea salt while the caramel is still warm for the perfect sweet-salty combo.

Espresso Keto Caramel Sauce

Mix in ½ teaspoon of instant espresso powder to give your caramel a bold, mocha-inspired twist. Amazing drizzled over keto ice cream!

Frequently Asked Questions

Try This Keto Caramel Recipe!

This easy 3 ingredient caramel sauce is something I make constantly—and I think you’re going to love it just as much as I do. Whether you’re making keto Twix bars, need a keto caramel syrup for desserts, or just want a spoonful of something sweet, this recipe has you covered.

If you try this keto caramel sauce recipe, please rate it, leave a comment, and post a photo and tag me on Instagram so I can see your creations!

XO,
Sarah