Ghee vs Olive Oil: Which Is Better for Cooking?

If there's one oil every Australian kitchen has, it's olive oil. And rightly so, it's a beautiful thing.

So when people ask whether they should be cooking with ghee instead, my honest answer is: it's not really either/or. They're good at different things, and once you know which is which, you'll reach for the right one without thinking. Let me explain.

Where olive oil wins

Let's give olive oil its due first, because it deserves it.

A good extra virgin olive oil is genuinely lovely, fruity, peppery, full of character. It's the star of a salad dressing, a drizzle over finished dishes, dipping bread, and gentle low-heat cooking. For all of that, ghee isn't trying to replace it, and honestly, nor should it.

The catch is heat. Extra virgin olive oil has a relatively low smoke point, so once the pan gets properly hot it starts to break down, oxidise and turn bitter. You'll know the moment, that acrid smell and the faint haze coming off the pan. That's the oil degrading, and it's exactly where ghee comes in.

Where ghee wins: the hot pan

This is ghee's home turf.

Because we simmer our grass-fed butter until all the water and milk solids are removed, what's left is almost pure golden butterfat, and it handles serious heat. Ghee's smoke point sits around 250 degrees, so you can sear, roast and fry hard without your fat smoking, burning or turning bitter. Olive oil simply can't do that, and it's not meant to.

It's the same reason ghee is our go-to fat for cooking steak, you want the pan screaming hot for a proper crust, and ghee lets you do that.

How they're made, and why it matters

The difference in the pan really comes down to how each one is made.

Olive oil is pressed from olives, keeping much of the fruit's natural water and plant compounds. Those compounds are lovely for flavour and for cold uses, but they're also what makes the oil more fragile under heat, they oxidise and break down when things get hot.

Ghee goes the other way. We start with Australian certified organic, grass-fed butter and simmer it slowly, in small batches, for around seven hours. The water cooks off, the milk solids gently brown and are filtered away, and what's left is a pure, stable butterfat. That's why it can take the heat, there's simply very little left in it to burn. It's also why a good ghee tastes the way it does, rich, nutty, almost shortbread-like, rather than plain.

A simple side-by-side

What about the health side?

Both are good fats, they just bring different things to the table.

Olive oil is famous for its heart-friendly monounsaturated fats and polyphenols, and there's a mountain of Mediterranean-diet research behind it. No argument there, it's earned its reputation.

Ghee brings its own strengths. It's rich in butyric acid, which feeds the good bacteria in your gut and supports digestion, and it carries the fat-soluble vitamins A, D and E that come with proper grass-fed butter. It's also naturally lactose- and casein-free, so it suits people who find dairy doesn't sit well, without giving up that buttery flavour. If lactose is your concern, we've written more on ghee and lactose here, and if you'd like the full picture, here are the health benefits of ghee.

The practical stuff

Two everyday points worth mentioning.

Storage. Ghee doesn't need the fridge and keeps happily in the cupboard for ages, no fuss. Olive oil is more delicate, it degrades faster once opened, especially in light and warmth, which is why you should keep it somewhere cool and dark and use it within a few months. If you've ever poured a glug of old olive oil and caught a stale, slightly rancid whiff, that's what's happened.

Flavour. Ghee is nutty, rich and savoury, and works across sweet and savoury cooking alike. Olive oil brings its own distinct fruity character, wonderful in the right dish, less suited to others. Neither is "better", they're just different tools for different jobs.

A note on olive oil quality (and why it matters)

One thing worth knowing: not all olive oil is what it says on the label. Olive oil is one of the most commonly adulterated foods in the world, and plenty of bottles sold as "extra virgin" have been cut with cheaper oils or aren't as fresh as they claim. It's the same problem we see in the ghee world, which is exactly why we're so open about how ours is made. If you're curious, we've written about what really makes a pure product.

The lesson applies to both fats: buy from producers who are transparent about sourcing and process. A cheap, poorly made version of either oil will let you down, whether that's a "ghee" that's really just anhydrous milk fat, or an "extra virgin" that's seen better days.

Which one for which job?

Here's the cheat sheet we'd give a friend:

• Searing a steak or chops: ghee, every time.
• Roasting veg or potatoes: ghee, for that golden, crispy finish.
• Salad dressing or drizzling over finished food: olive oil.
• Dipping bread, gentle sauteing: olive oil.
• Baking: ghee, for a richer, nuttier crumb (more on baking with ghee here).
• Everyday frying and weeknight cooking: ghee, it just handles the heat.

You don't have to choose a side, in fact, the best-stocked kitchens keep both and use each for what it does best.

A few quick questions

Is ghee healthier than olive oil?

Neither is "healthier" in a blanket sense, they offer different things. Olive oil brings monounsaturated fats and polyphenols; ghee brings butyric acid, fat-soluble vitamins and a lactose-free profile. Most kitchens are better off with both.

Can I use ghee instead of olive oil?

For anything involving heat, absolutely, and often with better results. For raw uses like dressings, olive oil is still the better fit.

Which has a higher smoke point?

Ghee, by a clear margin, around 250 degrees versus olive oil's much lower threshold. That's the single biggest reason to cook hot dishes in ghee.

Does ghee taste like olive oil?

Not at all. Olive oil is fruity and peppery; ghee is nutty, buttery and savoury. They suit very different dishes, which is part of why it's worth having both on hand.

Can I mix ghee and olive oil in the same dish?

Yes, and it's a lovely trick. Start a dish in ghee for the high-heat searing, then finish with a drizzle of good olive oil off the heat for its fresh, fruity flavour. You get the best of both, ghee's heat tolerance and olive oil's raw character, in the one plate.

So, which should you use?

Both. Keep the olive oil for your salads and your drizzling, and reach for ghee when the pan gets hot. Between the two, you've got almost every kind of cooking covered.

If you'd like to try a genuinely good one, our Australian Certified Organic, grass-fed ghee is made in small batches right here in Adelaide.

Same food. Same kitchen. Change what you cook it in.