
This hearty Chicken Fajita Casserole transforms the vibrant flavors of traditional fajitas into a comforting, crowd-pleasing dish. The tender shredded chicken and perfectly caramelized vegetables get smothered in a creamy, cheesy sauce that will have everyone coming back for seconds.
I first created this casserole when I needed to feed a hungry crowd during a family gathering. The combination of creamy cheese and fajita spices was such a hit that it has become my most requested potluck contribution ever since.
Ingredients
- Boneless skinless chicken thighs: about 2 pounds provides more flavor and moisture than breast meat and stays tender during baking
- Red bell pepper: adds vibrant color and subtle sweetness choose one that feels firm and heavy for its size
- Large onion: creates a flavorful foundation look for firm onions without soft spots
- Cream cheese: creates the luxurious creamy texture allow it to fully soften at room temperature for easier mixing
- Cheddar cheese: forms both the internal cheese layer and golden top choose a good quality sharp cheddar for maximum flavor
- Fajita seasoning: infuses authentic Mexican flavors throughout the entire dish
- Salt and pepper: optional for adjusting seasoning to your taste
Step-by-Step Instructions
- Preheat and Bake Chicken:
- Set your oven to 350°F and arrange chicken thighs in a single layer in your casserole dish. Cover tightly with foil to trap moisture and bake for 30 to 35 minutes until the internal temperature reaches 160°F. Allow the chicken to cool just enough to handle safely before shredding. Make sure to drain any accumulated cooking liquid to prevent a watery casserole.
- Cook Vegetables to Perfection:
- While the chicken bakes, prepare your vegetables by heating a frying pan with cooking spray over medium low heat. Add your sliced peppers and onions, then cook patiently, stirring occasionally. The magic happens when you allow them to slowly caramelize over 20 to 25 minutes, developing deep flavor compounds that transform the entire dish. The vegetables should become soft with golden brown edges.
- Create the Creamy Base:
- In a large mixing bowl, combine the room temperature cream cheese, half of your shredded cheddar, and the fajita seasoning. Mix thoroughly until the seasonings are evenly distributed throughout the cream cheese. Add your shredded chicken and caramelized vegetables, folding everything together until completely incorporated. Transfer this mixture back to the same casserole dish, spreading it into an even layer.
- Add the Cheesy Topping:
- Sprinkle the remaining half of your shredded cheddar cheese evenly across the entire surface of the casserole. This will create a golden, bubbly cheese crust that adds both flavor and visual appeal to the finished dish.
- Final Baking:
- Return the assembled casserole to your preheated oven and bake uncovered for 25 to 30 minutes. Watch for the cheese to melt completely and develop light golden spots. The edges should be bubbling gently, indicating that the casserole is heated through. Let it rest for 5 minutes before serving to allow the flavors to settle.

The fajita seasoning is truly the heart of this recipe. I discovered that toasting the dried spices in a dry pan for just 30 seconds before mixing them with the cream cheese intensifies their flavor dramatically. My grandmother taught me this trick, and now I apply it to nearly all my Mexican inspired dishes.
Make-Ahead Magic
This casserole actually improves when made in advance. Prepare everything up to the final baking step, then cover and refrigerate for up to two days. The resting time allows the flavors to meld beautifully, creating an even more cohesive dish. When ready to serve, simply add an extra 10 to 15 minutes to the baking time since you'll be starting with a cold casserole.
Creative Variations
Transform this basic recipe by incorporating additional ingredients that complement the Mexican flavor profile. Try adding a layer of black beans, corn kernels, or even diced green chilies for extra texture and flavor. For a spicier version, mix in some diced jalapeños or a dash of hot sauce. You can also swap the chicken for ground beef or turkey for a different protein option that works equally well with the fajita seasonings.
Serving Suggestions
This versatile casserole pairs wonderfully with simple sides that complement its rich flavors. Serve with a crisp green salad dressed with lime vinaigrette for a refreshing contrast to the creamy casserole. Warm corn tortillas make excellent vehicles for scooping up the casserole contents. For a complete fiesta, add a side of Mexican rice, black beans, or roasted corn. Garnish individual servings with fresh cilantro, diced avocado, or a dollop of sour cream to elevate the presentation.
Common Questions About This Recipe
- → Can I use chicken breasts instead of thighs?
Yes, chicken breasts can be used. Thighs provide more moisture and flavor, but breasts will work if you prefer a leaner option. Adjust baking time as needed, since breasts may cook faster.
- → How do I make this dish ahead?
Prepare up to step 3, cover, and refrigerate for 1–2 days. When ready to bake, add topping cheese and extend baking time for a bubbly, golden result.
- → What side dishes complement this casserole?
Serve with rice, a green salad, or warm tortillas for a complete meal. Roasted vegetables or black beans also pair nicely with the dish's flavors.
- → Can I add extra vegetables?
Absolutely! Mushrooms, zucchini, or corn can be sautéed with peppers and onions, adding flavor and bulk to the finished dish.
- → Is this dish freezer-friendly?
Yes. Assemble, cool, then freeze before baking. Defrost in the fridge overnight and bake until heated through and bubbly on top.
- → What's the best way to shred the chicken?
After baking, let the chicken cool briefly and use two forks to pull it apart into bite-sized shreds, or chop with a knife for chunkier pieces.