Butter chips are small, creamy morsels made with a buttery, sweet flavor similar to butterscotch or caramel. They’re often used in baking—such as cookies, brownies, blondies, and bars—to add a rich, smooth taste and melt-in-your-mouth texture. Made primarily from sugar, milk solids, butter flavoring, and cocoa butter (or similar fats), butter chips provide a distinct buttery sweetness that complements chocolate, nuts, and spices.