Coconut Lime Margarita

A refreshing and creamy take on the classic margarita. This coconut margarita has all the lime flavor, isn't overly sweet, and can be served on the rocks or frozen. This recipe makes 2 cocktails, but you can use the buttons on the recipe card to increase the recipe, this is the perfect cocktail for a crowd.

This post may include affiliate links. Please read my disclosure policy.

Please read the entire post for tips and tricks to ensure a perfect recipe every time. And don't forget to tag @peelwithzeal on Instagram so we can admire your creation!

This recipe is refreshing, making it perfect for summer. But also, totally appropriate for a winter white party.

We have been having a lot of success with our mezcal cocktails, our Mezcal Paloma quickly became one of the most popular recipes to date. I have a feeling this coconut lime margarita is going to have the same appeal.

And you can't have a margarita without chips and salsa. And if you are going to do a twist on a classic cocktail, you should definitely do a twist on traditional salsa. This is why we served this delicious drink with our no-cilantro roasted salsa.

Jump to:

• 🧾Ingredients
• 💬 Substitutions
• ⏲️Instructions
• 💭Tips and Tricks
• 🌡️Make Ahead and Storage
• 📖 Recipe

🧾Ingredients

The key to this recipe is using the correct type of coconut. You want the drink to be frothy, not heavy. And not too sweet. We love pina coladas, but this is no foo-foo cocktail.

• Coconut cream
• Tequila
• Lime Juice
• Orange Liquor
• Granulated Sugar
• Lime wedges (for garnish)

Toasted Coconut Glass Rim (optional)

• Unsweetened coconut- You want the dried flakes, no sugar added.
• Kosher salt
• Sugar
• Zest of 1 lime zested

You can use skip the salt and/ or sugar and just use the lime and coconut for a great look but without the extra saltiness or sweetness. Make it yours!

See recipe card for quantities.

💬 Substitutions

Coconut Cream vs Coconut Milk

Coconut cream is different than coconut milk, it has a higher fat content. To substitute coconut milk (the kind in a can, not a carton) for the cream place the can in the fridge for 60 minutes for the cream to separate from the coconut water. Spoon off the needed amount of cream from the top.

Do not use coconut milk beverages or cream of coconut. Coconut milk beverages may have sweetener added but most importantly they are thin and lack the fat needed to make the froth. Cream of coconut has sugar added. A lot of sugar added. If this is all you have on hand definitely skip the extra sugar. and know that the drink will be substantially sweeter than intended.

Tequila

I prefer a Blanco-style tequila for this margarita recipe. The best type of tequila to use for this drink is a mid-range priced one you like. Given the extra coconut, a high-priced tequila is necessary, the details of the spirit won't come through. But there is enough tequila flavor coming through you don't want to add a low-end tequila that tastes like rocket fuel.

Orange Liquor

My preference for orange liquor is Cointreau but Grand Marnier and triple sec also work just fine. If you don't have orange liquor on hand, simply add a small splash of OJ and a little extra sugar.

Lime Juice

For lime juice use fresh or bottled. I prefer bottled because I am admittedly lazy when it comes to cocktails and you would have to squeeze a lot of limes.

Simple Syrup vs Granulated Sugar

Simple syrup is granulated sugar dissolved in water over low heat and then cooled. Simple syrup is used in cocktails to eliminate the graininess of undissolved sugar and for a sweetness that is consistent throughout the drink.

While we typically use simple syrup for cocktails but here the sugar gets blended and dissolves quickly, so I don't go to the extra trouble to make a syrup. You can substitute simple syrup, honey, or coconut sugar. If you are avoiding sugar you can omit but the drink will be very tart.

⏲️Instructions

Toasted Coconut Glass Rim

The first step is to toast the coconut. Place the coconut in a dry skillet and toast over medium heat until golden brown. About 4 minutes. Spread out on a small plate and allow to cool for 5 minutes (this is when I blend the cocktail).

Mix in the salt, sugar, and lime zest on the plate. Using a lime wedge moisten the rim of the glass and dip into the coconut mixture.

How to Make a Coconut Margarita on the Rocks

Combine all the ingredients in a blender with 5 to 6 ice cubes. Blend on high for 30 seconds or until the ice is crushed. The ice helps keep the coconut froth without making it frozen.

Place ice into two coconut-rimmed glasses. Pour the blender contents into the glasses and garnish with a lime wedge.

How to Make a Frozen Coconut Margarita

Fill a blender with ice and add all the margarita ingredients. Blend on high for 60 seconds or until the ice is totally crushed.

Pour into two coconut-rimmed glasses and garnish with a lime wedge.

💭Tips and Tricks

• Use the solid white part of the coconut cream, leaving the clear liquid behind. 
• Do not over blend the coconut cream, it will turn into whipped cream. Making the drink extra thick.
• You can make the recipe without a blender by placing the ice in a cocktail shaker and adding all the drink ingredients. Shake for one minute. Using a strainer pour over ice. 

🌡️Make Ahead and Storage

If you want to make a batch of cocktails ahead of time using the blender method and serving over ice is your best bet. The coconut milk will stay frothy for 1 to 2 hours when stored in the fridge.

Leftover coconut milk? Cover and place in the fridge for 4 to 5 days. You can use the leftover cream or milk for our Thai pumpkin soup or my favorite vegetarian green curry.

📖 Recipe