Zucchini & Yellow Squash in Creamy Coconut Sauce

An irresistible zucchini squash recipe in creamy coconut sauce will convert your pickiest eater into a veggie fanatic. This dish is both comforting and bursting with flavor.

July 6, 2025

Zucchini in Coconut Sauce in a white bowl

Thai-Inspired Zucchini Squash Recipe

If you’re looking for a dish that’s both comforting and bursting with flavor, you absolutely have to try this recipe! Imagine the savory aroma of onions, celery, and mushrooms blending to create a rich, vegetable-based sauce, while garlic introduces an irresistible depth. 

But it doesn’t stop there! The addition of zucchini or yellow squash provides a creamy texture that beautifully complements the lusciousness of coconut milk. With a touch of tomato paste to thicken the sauce and red curry paste delivering a delightful spicy kick, every bite promises to be a thrilling experience for your taste buds.

To elevate the dish even further, a squeeze of fresh lime juice brings just the right amount of acidity to balance the richness, while vibrant cilantro adds a refreshing finish. This dish is not just food; it’s a celebration of flavors that will leave you craving more. Don’t miss out—try it today and treat yourself to a culinary delight that’s sure to impress!

healthy ingredients for zucchini squash recipe
This zucchini squash recipe contains wholesome ingredients.

Zucchini and Yellow Squash Recipe

Zucchini and yellow zucchini are the stars of my vegetable garden because they are among the first vegetables that I harvest each year. It’s terrific when the bounty starts coming in, and fresh produce is available for free (aside from the costs of organic compost, seedlings, stakes, raised beds, etc.). During the summer, I always look for new ways to use zucchini since they are so prolific, and I want to ensure that none of my hard work goes to waste.

What to Do with an Abundance of Zucchini?

If you’re blessed with a bounty of summer vegetables, such as squash or zucchini, try this Zucchini and Yellow Squash dish. The unique sauce is rich and tangy. It’s gluten-free, vegan, and low-carb.

More zucchini recipes to try include:

Lazy Egg Frittata

Zucchini Muffins

Zucchini Fritters

Red Lentil Curry

Try these recipes if you have an abundance of these delightful vegetables in your garden or at the market. 

Zucchini and yellow squash in a serving bowl

Squash and Zucchini Recipe Steps

1

Gather ingredients.

Sauté vegetables

3

Saute vegetables in a Dutch oven.

add tomato paste to sauteed vegetables

4

Gently add tomato paste.

Simmer yellow squash zucchini in coconut sauce

5

Add the coconut milk and simmer.

Zucchini and yellow squash in a serving bowl

6

Serve & Enjoy!

Zucchini in Coconut Sauce in a white bowl

More Reasons to Love Squash & Zucchini Recipe

  • Nutrition: Zucchini and yellow squash are rich in vitamins A and C, as well as potassium. Coconut milk adds a creamy sauce with healthy fats, making this dish dairy-free.
  • Meal Prep: This dish can be stored in the refrigerator for 3-4 days and reheats well on the stovetop or in the microwave. It also freezes well for 3 to 4 months.
  • Variations: To turn this dish into a main course, you can add any leftover protein of your choice. The creamy sauce will blend seamlessly with the meat, creating a new and delicious dish.
  • Flavor Variations: Check your fridge for vegetables that need to be used, such as spinach, kale, peppers, or carrots. You can also experiment with various spices, such as curry powder, ginger, and cumin.
  • Serving Ideas: Rice pairs well with this dish, but for a Paleo-friendly option, serve it over cauliflower rice. More serving ideas can be found below.

About Coconut Milk

You can find coconut milk in a can in the international food section of the grocery store. It has a full-fat and a lite variety – either is suitable for this recipe. Check the label to ensure there is no added sugar, as this product is for mixed drinks and desserts.

Coconut milk creates a flavorful and velvety texture for curries, stews, soups, and a variety of other dishes. It is also a popular dairy alternative for vegetarian and vegan dishes, offering healthy fats. Coconut milk is a popular ingredient in sauces across several cuisines, particularly in Southeast Asia, South Asia, and the Caribbean. 

Try this recipe paired with grilled meat and rice. See recipe ideas below. 

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Download this ultimate quick reference guide, which includes substitution tips, a symptom tracker, and a weekly menu. Go gluten-free the easy way. Build balanced, wheat-free meals and understand hidden gluten traps. 

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Zucchini & Yellow Squash in Creamy Coconut Sauce

5 Stars 4 Stars 3 Stars 2 Stars 1 Star

5 from 4 reviews

An irresistible zucchini squash recipe in a creamy coconut sauce will convert even the pickiest eater into a veggie fanatic. This dish is both comforting and bursting with flavor.

  • Author: Karen
  • Prep Time: 5
  • Cook Time: 20
  • Total Time: 25 minutes
  • Yield: 6 1x
  • Category: Sides
  • Method: Stove Top
  • Cuisine: Thai
  • Diet: Gluten Free

Ingredients

Units Scale
  • 2 Tablespoon olive oil
  • 1 onion, chopped
  • 3 cloves garlic, minced
  • 1 celery stalk, diced
  • 1/2 teaspoon salt
  • 2 zucchinis or yellow squash, diced (or 1 of each makes a colorful dish)
  • 1 lb. white mushrooms, sliced
  • 3 oz. tomato paste*
  • 13.5 oz. Can coconut milk (full fat or lite, but no added sugar), located in the international food section
  • 1 Tablespoon red curry paste or sriracha sauce or to taste, optional
  • 1 lime, quartered
  • 2 – 3 Tablespoons fresh cilantro, minced.

Instructions

  1. In a deep skillet or Dutch oven, heat the oil over medium heat. Stir in the garlic, onion, and celery, and cook for 5 minutes, stirring occasionally, until the vegetables have softened.
  2. Add the mushrooms, salt, and squash, and cook for an additional 5 minutes, stirring frequently.
  3. Add the tomato paste and gently work it into the vegetables.
  4. Add coconut milk and simmer on low for 10 minutes.
  5. Taste for seasoning and sprinkle with minced cilantro. Serve with lime slices. Note: Feel free to add a kick with red curry paste or sriracha sauce. Start with one teaspoon and taste.

 

Notes

Serve with Thai Grilled Salmon and Brown Rice.  If eating low-carb or paleo, serve over cauliflower rice.

*Tip: Freeze the unused portion of tomato paste in a zip-lock baggie for future use.

Did you make this recipe?

If you enjoy this recipe as much as I do, please take a moment to give it a 5-star rating in the comments below. Simply scroll to the bottom of this page and click on the 5 stars. Your support helps this recipe reach more people, and I truly appreciate it!

 

Also, feel free to tag @suppersanity on Instagram. Thank you!

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Let me know your thoughts on this post!

10 responses to “Zucchini & Yellow Squash in Creamy Coconut Sauce”

    • Ohhh that spice blend sounds like a great addition! I did not know the Arabic word for the famous 7 spice blend. Thanks for the education and review.

  1. This was so good — The changes I made were only because these were the things I had on hand and I was trying to use up some things — I’ll bet the recipe “as is” is delicious, but I thought I’d share our version. Zucchini only (a 3-pack from Aldi), 1 pkg brown mushrooms, 4 small peeled sweet potatoes, chopped and roasted in olive oil/salt, a splash of tomato sauce instead of paste, and the coconut milk was one can minus 1/2 cup. Like I said, I was improvising! Used the same onion, garlic, salt, siracha. No lime but I will try next time! Left off the cilantro. Sorry I’m not one of those people trying to improve your awesome recipe, I’m just sharing that it is a flexible recipe! I think the coconut milk/siracha combo is so so tasty – not too hot. This is in our rotation now! Thank you so much.

    • Hi Heather, that makes me so happy to hear! Thanks so much for taking the time to comment and I appreciate your creative use of what’s on hand. Brilliant!

  2. This was so good — The changes I made were only because these were the things I had on hand and I was trying to use up some things — I’ll bet the recipe “as is” is delicious, but I thought I’d share our version. Zucchini only (a 3-pack from Aldi), 1 pkg brown mushrooms, 4 small peeled sweet potatoes, chopped and roasted in olive oil/salt, a splash of tomato sauce instead of paste, and the coconut milk was one can minus 1/2 cup. Like I said, I was improvising! Used the same onion, garlic, salt, siracha. No lime but I will try next time! Left off the cilantro. Sorry I’m not one of those people trying to improve your awesome recipe, I’m just sharing that it is a flexible recipe! I think the coconut milk/siracha combo is so so tasty – not too hot. This is in our rotation now! Thank you so much.

    • Thank you so very much for your review. I am glad you liked it and made it to your meal rotation. That is a big compliment!

  3. This dish is delicious and flavorful. It’s a great side dish with your Thai salmon recipe or any chicken and rice dish. Good eating!

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Karen the Supper Sanity Home Chef

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Supper Sanity

Hello, I’m Karen, a very passionate meal planner! As a mother of three, I have been planning family menus for years. When I was diagnosed with a digestive condition, I found it necessary to follow an eating regimen that eliminated many ingredients. Meal planning became a health necessity. I’ve learned a lot and want to share my resources to simplify meal planning, shop efficiently, and cook affordable homemade meals. If you wish to try new recipes, plan healthier meals, and enjoy a great dinner with your friends and family, Supper Sanity can help.

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