Keto Chicken with Bacon Mushroom Gravy is a simple, all in one skillet meal that is tasty gluten-free, grain-free, and has a Paleo version.

This simple to prepare, low carb, keto chicken with bacon mushroom gravy meal is made all in one skillet or pan and is smothered in a creamy rich mushroom and bacon gravy.
The only difference between the keto & paleo version is the keto lower-carb version uses cream cheese to thicken the gravy, and the paleo version uses arrowroot powder mixed with butter to thicken it.
Although the paleo version is still considered low in carbs, it does have a few more net carbs than the keto option.
One Skillet Keto Chicken with Bacon Mushroom Gravy is a hearty, savory, satisfying meal.

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Keto Chicken with Bacon Mushroom Gravy Recipe-
Ingredients:
- 1 ½ lb chicken thighs or breasts, skinless boneless (about 4 to 5 pieces)
- 2 slices uncooked bacon, chopped
- 1 ½ cup sliced white mushrooms
- 1 tablespoon avocado oil or olive oil
- ½ teaspoon sea salt, divided
- ⅛ teaspoon black pepper
- 1 tablespoon butter
- 2 garlic cloves, minced
- 1 teaspoon dried thyme leaves
- ⅓ cup chicken broth
- Thickener: 3 ounces cream cheese (softened) for keto version, or for *paleo version use- 2 teaspoon arrowroot powder + 1 tablespoon butter (mashed together with a fork)
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Directions:
- Sprinkle chicken with ¼ teaspoon of the salt and ⅛ teaspoon pepper. In a large skillet over medium-high heat, add the 1 tablespoon oil and sear chicken for 5 to 7 minutes on each side until browned.
- Remove chicken from skillet and place on a plate and set aside (will return to the pan later).
- In the same pan used for the chicken, over medium heat, fry chopped bacon until slightly browning.
- Add 1 tablespoon butter, melt and add minced garlic and sliced mushrooms. Stir and saute until mushrooms are browned and softened.
- Add chicken broth, dried thyme & ¼ teaspoon salt to the pan and stir.
- Turn up the heat to medium-high and bring liquid in the pan to bubbling. Add cream cheese and melt & stir into the sauce until sauce thickens & turn the heat back to medium. *For Paleo: add the arrowroot & butter mixture to the pan & stir and melt arrowroot butter into the sauce over medium to medium-high heat until the sauce starts to thicken.
- Place chicken back in the pan with mushroom sauce, cover and turn the heat down to low & simmer for 5 to 8 minutes, or until chicken is completely cooked. Plate chicken and pour some of mushroom bacon gravy over the chicken.
Printable Recipe Card & Nutritional Data Below:
📖 Printable Recipe Card

One Skillet Keto Chicken with Bacon Mushroom Gravy
Ingredients
- 1 ½ lb chicken thighs or breasts skinless boneless (about 4 to 5 pieces)
- 2 slices uncooked bacon chopped
- 1 ½ cup sliced white mushrooms
- 1 tablespoon avocado oil or olive oil
- ½ teaspoon sea salt divided
- ⅛ teaspoon black pepper
- 1 tablespoon butter
- 2 garlic cloves minced
- 1 teaspoon dried thyme leaves
- ⅓ cup chicken broth
- Thickener: 3 ounces cream cheese, softened For keto version, or for *paleo version use- 2 teaspoon arrowroot powder + 1 tablespoon butter (mashed together with a fork
Instructions
- Sprinkle chicken with ¼ teaspoon salt and ⅛ teaspoon pepper. In a large skillet over medium-high heat sear chicken in the 1 tablespoon oil for 5 to 7 minutes on each side until browned.
- Remove chicken from skillet and place on a plate and set aside (will return to the pan later).
- In the same pan used for the chicken, over medium heat, fry chopped bacon until slightly browning.
- Add 1 tablespoon butter, melt and add minced garlic and sliced mushrooms. Stir and saute until mushrooms are browned and softened.
- Add chicken broth, dried thyme & ¼ teaspoon salt to the pan and stir.
- Turn up the heat to medium-high and bring liquid in the pan to bubbling. Add cream cheese and melt & stir into the sauce until sauce thickens & turn the heat back to medium. *For Paleo: add the arrowroot & butter mixture to the pan & stir and melt arrowroot butter into the sauce over medium to medium-high heat until the sauce starts to thicken.
- Place chicken back in the pan with mushroom sauce, cover and turn the heat down to low & simmer for 5 to 8 minutes, or until chicken is completely cooked. Plate chicken and pour some of mushroom bacon gravy over the chicken.
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Lisa
Instead of boneless could I use bone in? But this recipe sounds 1000000% delicious 🤤 I really hope me and my husband mainly my husband likes this meal.
Stacey
Hi Lisa, yes, you can use bone-in. You will need to cook it longer though.
Lisa
Awesome, that will be fine
Gail
This was amazing!!! The husband and I both LOVED it! Can’t wait to make it again for friends
Stacey
Thank you, Gail, I'm so happy you and your hubby enjoyed the recipe 🙂
Cynthia
I can't have mushrooms what can I replace them with?
Stacey
Hi Cynthia, I would replace the mushrooms with chopped zucchini, as zucchini is also low carb, mild-flavored, and absorbs the flavor of the sauce.
Dawn
So in my house if you make a successful dinner, you are on a culinary high and must keep cooking until you fall from status. Thank you so much! Because of this lovely recipe I will have to continue cooking…great job😂
Stacey
Thank you so much, Dawn, So happy that you've kept your culinary status. I love that idea!
Geena Haze
I have not made this recipe yet, but I am DELIGHTED to find your arrowroot-and-butter substitute for cream cheese! I am lactose intolerant and can't tell you how many recipes I have passed up because they call for cream cheese. With this substitute, I can widen my cooking options! Many thanks.
Stacey
Thanks, Gina, it works well as a thickener.
Karen
Just made this for dinner! What a hit! Fixed brown rice for my husband and cauliflower rice for myself. Wonderful flavor! My husband asked when I’m making it again! Thanks so much for this wonderful addition to my Adkins diet!
Stacey
Thank you, Karen, for trying the recipe & for your very kind words. So happy you and your husband are enjoying it.
Danielle
This was excellent. I need to make more sauce next time. We added sliced avocado on top of ours. Yum!
Stacey
Thank you, Danielle, for trying the recipe & the avocado tip!
Diana
This recipe is so easy and delicious! Thanks for sharing 🙂
Stacey
Your welcome, Diana 🙂
Dawn O
Love it! I might add mor bacon next time. I like bacon.
Stacey
Girl, me too!!
Heidi
I made this. It is absolutely delicious.
I used boneless skinless chicken & I didn’t have any chicken broth so I used white wine. My husband said this is restaurant quality.
Stacey
Thank you, Heidi, for trying the recipe and sharing your tips. I love the white wine idea.
Ann Andres
I made this it is wonderful
Stacey
Thank you, Ann 🙂
Wendy
Made this last night and it was amazing!! I added spinach to get in some greens and a little more chicken stock and cream cheese to make more gravy. Thank you for the recipe!!
Stacey
Thank you, Wendy, For trying the recipe and for your kind words and tips. Adding the greens to the recipe is a great idea!
Anne
Just delicious! I can't wait to try it with thighs next time. I'm keto, but my husband just eats whatever. Both of its were blown away by how delicious this was! I used more mushrooms, and added a little extra broth because the cream cheese really thickened everything up fast! I kept having to tell my husband to get out of the sauce! He was in love, but I've got to have my leftovers! Ha ha!
Stacey
Thank you, Anne, for trying the recipe and for your kind words! So glad your hubby enjoyed it too. My hubby had the same reaction, lol. Must be the bacon!
Heather
This was amazing! I cooked the bacon first and used the grease to cook the chicken in (breasts in place of thighs as I was all out). I used some more grease foe the cremini mushrooms and doubled the garlic cuz we're garlic freaks! I also used Balanced Bites Italian seasoning blend in place of the thyme and added heavy cream to get more sauce! Will add this to the rotation for sure! Thank you!
Stacey
Thank you so much, Heather, for trying the recipe and for sharing your tips & kind words 🙂
Mike
Really easy to whip this together. Excellent taste as well. Winner winner chicken dinner.
Stacey
Thank you, Mike, for trying the recipe and for your kind words 🙂
Libby
My husband and I loved this recipe! Easy to make and very tasty! I added some chopped onion to the gravy for a little more flavor.
Judi
This was delicious! I didn’t have cream cheese so I added sour cream instead. I use xanthum gum to thicken. We will definitely have this again!
Stacey
Thank you so much, Judy, for trying the recipe, sharing your tips and for your kind words 🙂
Kelly
Excellent was delicious. My son loved it who is on Keto. Very easy simple and no fancy ingredients. Will be added to our meal rotations. Thanks for this recipe!
Stacey
Thank you so much, Kelly, for trying the recipe and for your kind words. So happy your son enjoyed it 🙂
Colleen
Made it the other night and it was delicious!
Stacey
Thank you so much, Colleen, for trying the recipe and your kind words 🙂
Amy B
Really tasty! Family loved it
Stacey
Thank you so much, Amy, for trying the recipe and also for your very kind words.
Kristen
Can you use xanthum gum to thicken it?
Stacey
Yes, you can, Kristen.
Annemarie
Bacon mushroom gravy? I'm in! My family will love this.
Anne Lawton
This looks so good, I can't wait to give it a try!
Crys
Can't wait to try this. Think it will make a perfect family meal with cauliflower mash and country green beans !
Zuzana
This shouts my name. I have just started using our cast iron wuite a lot and love how easy dishes can be made. But this? This is the winner of all.
chihyu
Oh my goodness! It looks so delicious and I know that my family would love this recipe!
Yang
The flavour combo is amazing! You can't go wrong with chicken, bacon and mushroom. I did not know you can use cream cheese as a thickener.
Kari - Get Inspired Everyday!
That bacon mushroom combo is pretty much unbeatable, and I absolutely love one skillet meals too!
paleoglutenfreeguy
OMG yes, please! This is so creamy and comforting and I love that you include a paleo version!
Hope
Chicken, bacon and mushrooms are such a great combo! Love how you have given a Paleo and Keto version!
Joni Gomes
As a mushroom love, this is exactly the type of recipe I am looking for!!
Tessa Simpson
drooling! this have absolutely all my favorites in one dish, I am so going to make a pan of this just for me!
Kelly
Chicken, mushrooms, and bacon - you can't go wrong with that combination. What a tasty recipe.
Shiela Marie Panilag
this is perfect for my keto diet! I also get my keto resources here too -
Jess Canul
Made this for my husband's meal preps, with a side of veggies. (Green squash, yellow squash, carrots, and onions) all fresh veggies / chopped and sautéed DELICIOUS!!!!
Stacey
Thank you, Jess, for trying the recipe & for sharing your tips.