Making your own sugar free caramel syrup (a.k.a. sugar free caramel sauce) is easier than you might think! This rich and decadent caramel flavor is perfect for topping your favorite keto desserts or drizzling over sugar-free whipped cream on hot drinks (like bulletproof coffee). Plus, just like sugar-free chocolate syrup, this keto caramel sauce tastes just like the real deal with only a few basic ingredients.

Ingredients & Substitutions

This section explains how to choose the best ingredients for sugar free caramel sauce, what each one does in the recipe, and substitution options. For measurements, see the recipe card below. This recipe has been so popular that I included it in my Easy Keto Carboholics’ Cookbook!

Butter – For the best flavor, use salted butter. However, if you are watching your salt intake, you could use unsalted butter instead.Besti Brown Monk Fruit Allulose Blend – I opted to use the brown version of Besti because I love the flavor of brown sugar. If you prefer, you could make it with crystallized or powdered Besti instead — both will dissolve just like sugar does, and they caramelize beautifully. If you want to use a different keto sugar substitute, keep in mind that most other brands (including erythritol, and most brands of monk fruit or stevia, which typically contain erythritol) will not dissolve well and crystallize upon cooling, leading to a gritty texture and you won’t get the same gooey mouthfeel. If you still want to try it, see my sweeteners conversion chart for exact substitute amounts.Heavy Cream – A necessary ingredient for caramel. Do not substitute any type of milk (including dairy milk, almond milk, and coconut milk), as these will not thicken properly. It would probably work to substitute coconut cream if you need to.Vanilla Extract – Use higher quality vanilla for best flavor.

How To Make Sugar Free Caramel Syrup

This section shows how to make the best sugar free caramel recipe, with step-by-step photos and details about the technique, to help you visualize it. For full instructions, including amounts and temperatures, see the recipe card below.

Storage Instructions

Store: Keep low carb caramel sauce in the refrigerator. I’ve made a double batch before and had it last for weeks that way without a problem.Reheat: Caramel will solidify in the fridge, so you’ll want to reheat it before serving. The best way to do this is on the stove over low heat, stirring frequently. It’s important that the temperature rises gradually when you reheat the sugar-free caramel sauce. Otherwise, you run the risk of “shocking” it, leading to separation of the oils.Freeze: Add sauce to a freezer-safe container and pop it in the freezer. When you’re ready to use it, let it thaw in the fridge or at room temperature. After thawing, reheat gently to get the right consistency.

What To Serve With Sugar Free Caramel Syrup

This low carb caramel sauce is a delicious and versatile topping that can be used on a variety of desserts or added as a sweetener. Here are some ideas! Stir occasionally and watch carefully to avoid burning on the bottom of the pan. Making a sugar free caramel sauce may seem like a daunting task, but with a little patience and the right ingredients, it’s actually quite easy! Here are a few tips and tricks:

Use a large pan. The larger the surface area of your pan, the faster your sauce will caramelize and thicken. I used a large saucepan, but you could even use a skillet with tall sides to make the process faster. Use the right sweetener. I typically recommend Besti in all my recipes, but it’s more crucial for some than others. This sugar free caramel syrup recipe is one where it makes a huge difference. You won’t get the same smooth, gooey texture using another sweetener. Be careful not to overheat. If the heat is too high, your sauce will “split”, meaning you’ll have oil separated from the other ingredients. If this happens, sometimes you can bring it back together in a blender. Add vanilla last. Adding the vanilla extract last, after removing from heat, ensures that it maintains its potency. If you add it while cooking, some of it will evaporate, reducing its flavor.

Dipping – Sugar free caramel syrup is perfect for dipping keto fruits (or any fruit), keto churros, and even cookies like almond flour shortbread and keto oatmeal cookies. Topping – Pour this sauce on classic desserts like keto cheesecake, keto apple pie, or keto lava cake.Breakfast – Transform keto cinnamon rolls, coconut yogurt, or low carb French toast into a special treat. Don’t miss how I use it for keto monkey bread in my Easy Keto Carboholics’ Cookbook!Ice Cream – Caramel always pairs well with classic keto ice cream, but you can also try coconut milk ice cream, almond milk ice cream, or mason jar ice cream.Drinks – Top your favorite hot or cold drinks (like sugar-free hot chocolate, keto iced coffee, or a low carb milkshake) with sugar-free whipped cream, then drizzle the caramel on top. You could also stir it right into hot drinks.

More Sugar Free Toppings

Level up your healthy desserts with these sugar free toppings: This reader favorite recipe is included in The Wholesome Yum Easy Keto Carboholics’ Cookbook! Inside this beautiful hard cover keto recipe book, you’ll find 100 delectable, EASY keto recipes to replace all your favorite carbs: bread, pasta, rice, potatoes, desserts, and more… each with 10 ingredients or less! Plus, a photo, macros, & tips for every recipe. ORDER NOW Share your recipe picture by tagging @wholesomeyum and hashtag it #wholesomeyum on Instagram, or in our Facebook support group, too – I’d love to see it! Recipe from The Easy Keto Carboholics’ Cookbook.