Learn how to make homemade rainbow chip frosting. This from scratch frosting tastes even better than the real deal, without additives or preservatives. It’s not as cloyingly sweet and you can have fun customizing the colors of the rainbow chips! Use it to frost cupcakes, cakes, and more.

Not sure if you’ve ever had the pleasure of experiencing the tub of miracles otherwise known as rainbow chip frosting. It’s a tangy-sweet, but mostly sweet, vanilla frosting that has soft and colorful chips swirled inside. If unicorns and leprechauns owned a bakery together, rainbow chip frosting is what they would sell. But in real life, it’s sold in the baking aisle, so let’s make our own at home!

This Rainbow Chip Frosting Is

Fun to make

Infinitely better than the canned version

Silky smooth with festive rainbow chips

Sweet and a little tangy

Completely homemade– rainbow chips and all

Perfect for birthdays

A party in frosting form!

Overview: How to Make Rainbow Chip Frosting

For the full recipe, scroll to the bottom of this post.

Melt the white chocolate. Use a double boiler or microwave. I recommend Baker’s or Ghirardelli brands of white chocolate. They’re sold in bars in the baking aisle, typically right next to the chocolate chips. Add color. Pour the melted white chocolate into 4 bowls. Add 2-3 drops of food coloring to each. I like to use Americolor gel food coloring (affiliate link). Don’t use too much food coloring– this can cause your white chocolate to seize up. Spread the chocolate onto baking sheets. Line each baking sheet with a silicone baking mat or parchment paper. Refrigerate for 15 minutes. Make the frosting base. Beat the butter and cream cheese together until completely smooth and creamy. Add the confectioners’ sugar, then vanilla extract and salt. Set aside. Chop the white chocolate into “chips.” Remove the white chocolate from the refrigerator, place white chocolate rectangles on a cutting board, and chop it up into tiny squares or pieces. Fold a big handful of chips into the frosting using a rubber spatula. You’ll have a few chips leftover– great for decorating the cake/cupcakes/whatever you’re making!

You can use any color you like, but stick with just 4 because you won’t have enough white chocolate for more.

Spread the colors out onto a silicone baking mat or parchment paper, refrigerate for about 15 minutes until solid, then cut into little tiny pieces.

What Tastes Best with Rainbow Chip Frosting?

Pictured in these photos is my yellow sheet cake baked in a 9×13 pan. Takes 40 minutes in that size pan if you want to try it yourself.