Both red and green chiles come from the same plants. The peppers change color as they ripen from green to yellow to red. An easy rule of thumb is that green chiles are fresh, while red chiles are ripened, dried and then reconstituted with water before being cooked.

Green chiles are picked fresh and then roasted, peeled, chopped, and used for the basis of the delicious New Mexican dish known as chile verde. Since green chiles must either be used or frozen shortly after being picked, they most often feature as a regional specialty, frequently used in the cuisine of New Mexico, but not that of Mexico.

Mexican cuisine tends to rely more heavily on the red chile, as in its dried form it keeps and transports well and is the chile found in chili powder to make chili. Green chiles are usually considered a bit hotter, but can vary between extremely spicy and slightly spicy. Red Chiles are milder, but more earthy and consistent in their heat level.