Chile peppers are popular in food. They are rich in vitamin C and are believed to have many beneficial effects on health. The pain caused by capsaicin stimulates the brain to produce endorphins, natural opioids which act as analgesics and produce a sense of well-being. Psychologist Paul Rozin suggests that eating chiles is an example of a "constrained risk" like riding a roller coaster, in which extreme sensations like pain and fear can be enjoyed because we know they are not actually harmful.

The fruit is eaten cooked or raw for its fiery hot flavor which is concentrated along the top of the pod. The stem end of the pod has glands which produce the capsaicin, which then flows down through the pod. Removing the seeds(citation needed) and inner membranes is thus effective at reducing the heat of a pod.

Well-known dishes with a strong chile flavor are Mexican salsas, Tex-Mex chili con carne, and Indian vindaloos and other curries. Chile powder is a spice made of the dried ground chiles, usually of the Mexican chile ancho variety, but with small amounts of cayenne added for heat, while chili powder is composed of dried ground chile peppers, cumin, garlic and oregano. Bottled hot sauces such as Tabasco sauce are made from chiles such as the cayenne (not, oddly, from tabasco peppers), which may also be fermented.

Indonesian, Indian, Szechuan and Thai cuisines are particularly associated with the chile pepper, although the plant was unknown in Asia until Europeans introduced it there.

Sambal is dipping sauce made from chile peppers with any other ingredients such as garlic, onion, shallots, salt, vinegar and sugar. It is very popular in Indonesia, Malaysia and Singapore.