What Is a Blue Coconut Margarita?

blue coconut margarita in a margarita glass with toasted coconut rim and lime wedge

The blue coconut margarita is a playful tropical twist on the classic margarita, combining the familiar notes of lime and tequila with flavors of coconut and the striking color of blue curaçao. This cocktail stands out for its creamy texture, vibrant azure hue, and balanced sweet-citrus taste—making it a favorite at summer parties and beach-inspired venues. Its popularity soared with chain restaurant versions, notably Applebee’s Blue Coconut Margarita, but it's just as easy to make an impressive version at home.

Origins and Allure of the Blue Coconut Margarita

While the classic margarita dates back to the 1930s, the blue coconut margarita developed decades later as bartenders began experimenting with colorful liqueurs and tropical flavors. Blue curaçao—an orange-flavored, vividly dyed liqueur—brings the electric blue color and subtle citrus, while coconut cream or coconut syrup delivers island sweetness. The result evokes Caribbean cocktails, but retains the agave punch and refreshing tang margaritas are known for.

Recipe for a Blue Coconut Margarita (Applebee’s-Style)

Recreating the blue coconut margarita at home is simple with the right ingredients. Blue curaçao provides the signature color, while coconut cream (not coconut milk) delivers richness. Here’s a version inspired by Applebee’s recipe, using easy-to-find mixers and tequila blanco.

45 ml tequila blanco (100% agave for best flavor)
22.5 ml blue curaçao
22.5 ml coconut cream (unsweetened if possible; otherwise reduce syrup below)
30 ml fresh lime juice
15 ml simple syrup (or adjust to taste)
Ice for shaking
Toasted coconut flakes (for glass rim; optional)
Lime wedge (for garnish)

Method: Mixing a Velvety, Vibrant Coconut Margarita

Optionally rim a margarita glass by dipping in lime juice and then toasted coconut. Set aside.
Fill a cocktail shaker with ice.
Add 45 ml tequila blanco, 22.5 ml blue curaçao, 22.5 ml coconut cream, 30 ml lime juice, and 15 ml simple syrup.
Shake hard for about 15 seconds, ensuring the coconut cream fully incorporates.
Strain into the prepared margarita glass—no ice if served up, or over fresh ice if you prefer it on the rocks.
Garnish with a lime wedge and a sprinkle of coconut, if desired.

ingredients for blue coconut margarita including tequila, blue curaçao, and coconut cream

Tips for a Creamy, Balanced Blue Coconut Margarita

Use coconut cream (not coconut milk) for a velvety, thick texture—brands like Coco Lopez or Real are reliable.
For a frozen version, blend all ingredients with a cup of ice until smooth.
Adjust sweetness by adding more or less simple syrup, especially if your coconut cream is pre-sweetened.
Try a salted-coconut rim for contrast—a simple mix of flaky sea salt and toasted coconut flakes.
Espolòn and Cazadores are two tequila blanco brands that work especially well in this recipe.

blue coconut margarita with toasted coconut rim and lime garnish on bar

Why the Blue Coconut Margarita Stays Popular

Few cocktails combine dramatic color and lush flavor quite like the blue coconut margarita. Its crowd-pleasing mix of coconut, citrus, and agave makes it adaptable—served neat, on the rocks, or frozen. The cheerful hue and familiar coconut-lime profile have made it a menu mainstay at restaurants and an easy showstopper for any home bartender seeking a drink as fun to look at as it is to sip.