Chicken Fajita Casserole – Creamy, Cheesy & Easy

Creamy, cheesy, Tex-Mex comfort baked right in your casserole dish.

Prep Time	Cook Time	Total Time	Servings	Difficulty
10 minutes	55–65 minutes	~75 minutes	8	Easy

The Recipe That Fixed My Weeknight Crisis

You know that feeling. It’s 5:30 PM.

The fridge is stuffed with random ingredients that don’t belong together. Everyone’s hungry. And you have absolutely no plan.

That’s exactly how this casserole was born.

I had chicken thighs sitting in the fridge, a couple of sad-looking bell peppers, one onion, and a block of cream cheese I’d forgotten about since the weekend. Instead of stressing over what to make, I just… threw it all into one baking dish. Covered it. Crossed my fingers.

What came out of the oven? Genuinely one of the best things I’d made in months.

This chicken fajita casserole takes everything you already love about fajitas the smoky seasoning, the sweet peppers, that savory tender chicken — and turns it into a completely hands-off baked dish. No sizzling platters. No tortilla juggling. Just load it up, bake it, and eat.

Why Chicken Thighs Are the Star Here

I’ll be honest — I always reach for thighs over breasts for this one.

Here’s why. Thighs carry more fat than breasts. More fat means more moisture during that long bake. They stay juicy, they stay tender, and when it’s time to shred them… a fork and two minutes is genuinely all it takes.

You’ll need about 10 boneless, skinless thighs — roughly 2 pounds. No marinating. No pounding them flat. The fajita seasoning and cream cheese do all the hard work on flavor.

Ingredients You’ll Need

Here’s everything that goes into this dish, with a few notes to help you shop smart:

Ingredient	Quantity	Notes
Boneless skinless chicken thighs	10 pieces (~2 lbs)	Trimmed of excess fat; thighs stay juicy during baking
Red bell pepper	1 large	Seeded and sliced into thin strips
Yellow onion	1 large	Peeled and sliced into thin strips
Cream cheese	8 oz	Softened to room temperature for easy mixing
Shredded cheddar cheese	8 oz	Sharp or mild; divided for mixing and topping
Fajita seasoning	1.5 tbsp	Store-bought or homemade blend
Salt & pepper	To taste	Optional; adjust based on your seasoning’s saltiness

The ingredient that surprises people most? The cream cheese.

It’s not traditional in fajitas at all. But what it does in this casserole is kind of remarkable — it melts right into the chicken drippings and forms this rich, almost saucy coating around everything. Trust the process on this one.

Pro Tip: Pull the cream cheese out of the fridge at least 30 minutes before you start cooking. Cold, firm cream cheese is a pain to mix. Softened cream cheese blends smooth and even — no lumps, no fighting it.

A Note on the Fajita Seasoning

Store-bought works perfectly here. Grab a packet and go.

But if you’d rather mix your own, here’s a simple blend that gets you close to 1.5 tbsp:

• 1 tsp cumin
• 1/2 tsp smoked paprika
• 1/2 tsp garlic powder
• 1/4 tsp onion powder
• 1/4 tsp chili powder

One thing to watch: pre-made packets vary a lot in sodium. Taste the mixture before adding any extra salt. Some packets are already quite salty on their own.

How to Make It — Step by Step

This recipe runs in two stages.

First, you bake the chicken until it’s tender and shreddable. Then you build the cheesy filling, load it back into the dish, and bake again until it’s bubbling and golden.

Two bakes sounds like extra work. It’s really not. Each stage is simple. And the result is so much better than dumping everything in raw.

Step 1 — Bake the Chicken

1. Preheat your oven to 350°F (175°C).
2. Arrange the 10 chicken thighs in a single layer inside your casserole dish.
3. Season lightly with salt and pepper if you like. Cover the dish tightly with foil.
4. Bake for 30 to 35 minutes, until the internal temperature hits 160°F.
5. Pull it out of the oven. Let it rest for 5 minutes. Then shred or chop into bite-sized pieces. Drain any liquid from the dish before moving on.

Pro Tip: Do not skip that draining step. Chicken thighs let go of a surprising amount of liquid during the bake. Leave it sitting in the dish and it’ll water down your filling. Tilt the dish, drain it out, and move on.

Step 2 — Cook the Vegetables

While the chicken is in the oven, heat a skillet over medium-low heat. A light coat of cooking spray or a small drizzle of oil is all you need. Add the sliced red pepper and onion strips.

Now — be patient here.

Let them cook slowly for 25 to 30 minutes, stirring every 5 to 10 minutes. You’re not just softening them. You’re letting them caramelize. That golden, slightly jammy edge is where the flavor lives. Once they look soft and golden at the edges, pull them off the heat.

This step alone transforms the dish. Don’t rush it.

Step 3 — Mix the Filling

Grab a large mixing bowl.

Add the softened cream cheese, half the shredded cheddar (4 oz), and the 1.5 tbsp of fajita seasoning. Stir until it’s smooth and fully combined.

Then add the shredded chicken and the cooked peppers and onions. Fold everything together until each piece of chicken is coated in that creamy, seasoned mixture. The filling should look thick and well combined — not runny, not loose.

Step 4 — Assemble and Bake

6. Spoon the chicken mixture back into the same casserole dish you used for the first bake.
7. Spread it out evenly with a spatula.
8. Scatter the remaining 4 oz of shredded cheddar over the top in an even layer.
9. Bake uncovered at 350°F for 25 to 30 minutes — until the cheese is melted, the edges are golden, and the filling is bubbling.

Pro Tip: Want that cheese extra golden and slightly crispy on top? Switch your oven to broil for the final 2 to 3 minutes. Stay close — cheese can go from perfect to burnt faster than you’d think.

Serving Suggestions

This casserole stands completely on its own as a filling, protein-packed main dish. But if you want to round it out, here are a few ideas that work really well:

• Spoon it over fluffy white rice or cilantro-lime rice
• Serve it alongside warm flour or corn tortillas for a semi-traditional fajita feel
• Pair it with cauliflower rice if you’re keeping things lower-carb
• Top each serving with sour cream, fresh pico de gallo, sliced avocado, or a squeeze of lime
• Crushed tortilla chips on the side add a satisfying crunch

Variations — Make It Your Own

One of the best things about this recipe? It’s incredibly flexible. Here are some of my favorite ways to switch it up:

Spicy Version Add two or three sliced jalapeños to the skillet alongside the peppers and onions. For milder heat, just remove the seeds before slicing.

Smoky Chipotle Twist Stir 1 to 2 teaspoons of chipotle puree straight into the cream cheese mixture. It adds a deep, smoky warmth that plays beautifully off the cheddar.

Protein Swap Short on time? Grab a rotisserie chicken from the store. Shred the meat and skip the first bake entirely. Cooked shrimp also works — just toss it in during the filling step since it’s already cooked through.

Extra Vegetables Sliced zucchini, corn kernels, or black beans all blend right into the filling without any extra prep. Add them raw — they’ll cook through during the second bake.

Cheese Variations Swap the cheddar for pepper jack if you want heat baked in from the start. A Mexican cheese blend melts just as beautifully and adds a slightly different flavor.

Make-Ahead Option Prepare the filling all the way through Step 3, load it into the casserole dish, cover, and refrigerate for up to 24 hours. When you’re ready to bake, add the cheese topping and cook. Allow 30 to 40 minutes if it’s going straight from the fridge into the oven.

Storage and Reheating

Fridge: Store leftovers in an airtight container for up to 4 to 5 days. This casserole reheats really well — microwave it for 2 to 3 minutes, or warm it in the oven at 325°F for about 15 minutes, covered with foil.

Freezer: Let the casserole cool completely before transferring it to a freezer-safe container. It keeps for up to 2 months in the freezer. Thaw it overnight in the fridge before reheating.

Storage Method	Container	Duration	Reheat Instructions
Refrigerator	Airtight container	4–5 days	Microwave 2–3 min, or oven at 325°F for 15 min (foil-covered)
Freezer	Freezer-safe container	Up to 2 months	Thaw overnight in fridge, then reheat as above

Frequently Asked Questions

Can I use chicken breasts instead of thighs?

Yes — chicken breasts work fine here. Just know the texture will be slightly firmer. Breasts dry out faster than thighs, so keep a close eye on the first bake. The moment your thermometer reads 160°F, pull them out and shred quickly. If shredding feels like too much effort, simply cut the cooked breasts into bite-sized chunks instead.

Can I make the filling less rich or lower in calories?

Absolutely. Cut the cream cheese down to 4 oz instead of 8 oz for a lighter sauce — it’ll still be creamy, just not as heavy. Reduced-fat cream cheese blends just as smoothly as the full-fat version. And if you want to reduce the cheese further, skip mixing any cheddar into the filling and just use it as a topping.

What if my casserole turns out watery?

Nine times out of ten, this comes down to one thing: skipping the drain. Chicken thighs release a lot of liquid during the first bake. If that liquid stays in the dish, it thins out the cream cheese filling and leaves you with a soupy mess. Always tilt the dish and drain it before adding the filling. Also make sure your peppers and onions are fully cooked — undercooked vegetables can release extra moisture during the second bake.

Can I skip the two-bake process and cook everything at once?

You can. Bake raw chicken thighs with the topping for about 50 to 55 minutes total. But here’s what you’d be giving up: the caramelized peppers, and the chance to drain the excess liquid — two things that make a real difference in the final dish. If you’re short on time, the better shortcut is using pre-cooked or rotisserie chicken. That way you skip the first bake entirely and only need the 25-minute final bake.

Is this good for meal prep?

Really good. It holds up in the fridge for several days and — honestly — tastes even better the next day once the flavors have had time to settle. Portion it into individual containers for easy lunches all week. When reheating, add a small splash of water or chicken broth to keep it from drying out.