Habanero chili peppers come in a variety of colors (usually red or orange), and sometimes are confused with Scotch Bonnet peppers. Scotch Bonnets are a very good substitute for Habaneros (they come from the same family of peppers) and the rule of thumb for telling the difference between them is that the Scotch Bonnet is squatty, and shaped somewhat like a Scottish cap called a tam, while the Habanero is more elongated and tear-drop shaped.

Habanero chilies are among the hottest of all types of chili. Measuring in at 200,000 and 300,000 Scoville units, the habanero is about 100 times hotter than jalapeño peppers. Habaneros are typically smallish peppers and range from yellow to orange when ripe. Popular in Caribbean cuisine, habaneros are often used in marinades and sauce dishes, like jerk chicken. When pronouncing the word "habanero," the H is silent and the N is a normal N, not an ñ. Many people mis-pronounce the N silmilar jalapeño.