
This Creamy Chicken Fajita Casserole is pure comfort layered with nostalgia and zest. Each bite is packed with juicy chicken and sweet bell peppers hugged by a velvety cheese sauce and that unmistakable fajita spice. Melted cheese bubbles on top promising golden goodness in every forkful. This dish has a way of turning regular weeknights into something to look forward to at the table. I remember throwing this together for a last-minute dinner party and the empty casserole dish said it all hours later.
My family now requests this regularly and it always reminds us of backyard fajita nights but with the ease of a cozy casserole. There is nothing like gathering around with everyone digging in after a long day.
Ingredients
- Chicken breasts: provide the hearty base. Choose fresh and plump for the best texture
- Bell peppers: add color sweetness and crunch. Pick peppers that have glossy skin and no soft spots
- Onion: deepens the savoriness. Yellow or white onion works great just look for ones that feel firm and heavy for their size
- Canned diced tomatoes and green chilies: bring a tangy kick and mild heat. Rotel recommended for extra zest
- Taco seasoning: provides the well-known flavor profile. Opt for your favorite blend or make it at home for gluten-free needs
- Shredded cheese: melts beautifully over everything. Cheddar and Monterrey Jack are best for flavor and melt
- Cream cheese: creates the creamy sauce. Go with full-fat for an indulgent texture
- Heavy cream: adds silkiness. Fresh cream is best for richness
Step-by-Step Instructions
- Prepare the Chicken:
- Heat your oven to 350 degrees Fahrenheit. Lightly season chicken breasts and bake them on a sheet tray or in a baking dish for about 20 to 25 minutes until you see the juices run clear and the chicken is just cooked through. Let the chicken cool slightly so it is easy to chop without losing any juices.
- Sauté the Peppers and Veggies:
- While the chicken bakes heat a large skillet over medium heat. Add sliced bell peppers onion and the diced tomatoes with green chilies. Cook for about 6 to 8 minutes stirring so nothing burns until the vegetables are soft but still colorful.
- Chop and Combine:
- Once the chicken has cooled enough to handle chop it into bite-sized pieces. Place the chopped chicken and sautéed veggies in a large bowl. Sprinkle on half the taco seasoning and toss everything together so every piece is coated.
- Mix in Creaminess:
- Now add half the shredded cheese all the softened cream cheese and the heavy cream. Use a wooden spoon or spatula to fold the mixture until you see the cream cheese melt into the other ingredients. Mix in the rest of the taco seasoning for even more flavor.
- Assemble and Top with Cheese:
- Spoon the creamy mixture into a casserole dish and spread it out to the edges. Sprinkle the remaining cheese evenly over the top so you get a cheesy crust after baking.
- Bake the Casserole:
- Slide the casserole into your preheated oven and bake for about 30 to 35 minutes. The cheese should bubble and turn golden toward the end. If you want more color on top you can turn on the broiler for a minute or two at the end just watch it closely to prevent burning.

My favorite part of this recipe is always the first scoop straight from the oven with all the gooey cheese strings. My youngest once declared it their birthday dinner after the first try and now it is a requested staple for celebrations and lazy weekends alike.
Storage tips
Transfer leftovers into an airtight container once cooled. This casserole keeps well in the fridge for up to three days. For longer storage portion it into freezer-safe containers and freeze for up to two months. To reheat thaw overnight in the fridge and bake covered at 325 degrees until warmed through.
Ingredient substitutions
Swap chicken breasts for rotisserie chicken to save time or use boneless chicken thighs for a richer flavor. If you do not have cream cheese a combination of sour cream and extra shredded cheese creates a similar texture. For extra veggies throw in a handful of spinach or diced zucchini before baking.
Serving suggestions
Spoon generous helpings onto plates with a side of cilantro lime rice or warm tortillas. Add a dollop of guacamole or fresh salsa for even more flair. This dish also pairs well with a crisp green salad if you are after something lighter.

Cultural context
Inspired by Tex-Mex cuisine this casserole echoes all the flavors of sizzling fajitas but is baked in one dish. Fajita recipes have deep roots in Mexican ranch culture but they took off in Texas as families put their own spins on the classic mix of peppers onions and protein.
Frequently Asked Questions
- → Can I use other types of cheese?
Yes, feel free to substitute cheddar and Monterrey Jack with mozzarella or your preferred melting cheese.
- → Is it possible to make this dish ahead of time?
You can assemble the casserole a day in advance, refrigerate, and bake it fresh when ready to serve.
- → How do I make it gluten-free?
Create homemade taco seasoning using chili powder, cumin, garlic, onion powder, paprika, salt, and pepper to ensure it’s gluten-free.
- → Can I add other vegetables?
Absolutely! Try adding mushrooms, zucchini, or extra peppers for a heartier casserole.
- → What can I serve with this casserole?
This dish pairs well with a simple green salad, steamed rice, or warm tortillas for a complete meal.