Sausage, Pepper, and Potato Bake

This sausage, pepper, and potato bake is a crowd-pleasing and budget-friendly meal that still feels indulgent. Look for kielbasa on sale and round it out with peppers, potatoes, and onions. Don't skip the sauce—it's what makes the whole dish!

Sausage Potato Casserole
Marta Rivera

Like most adults, I struggle with finding the right balance between frugality and indulgence when it comes to meals. Basically, I’m super frugal but it makes me mad when I can’t buy whatever I want to eat! Also, like many people I know, the end of the month tends to reveal itself in my sparse pantry.

I actually encourage its barrenness and enjoy being resourceful. Growing up, we often didn’t have a full larder. Many nights we ate canned spiced ham with rice for dinner. Those memories help me to appreciate the value of a full fridge.

Marta Rivera

A Budget-Friendly Meal

This Sausage, Pepper, and Potato Bake is such a budget-friendly meal that it’s on heavy rotation in my meal plans, especially towards month’s end.

I’m never disappointed when looking for an inexpensive kielbasa sausage. Typically, they’re on sale at least once a month, if not more often. (I’ve sometimes picked up a package of sausage for less than a dollar fifty!)

Combining it with the economical potato and onion not only rounds out the dish, but it also fills up a family for pennies on the dollar: less than $1.50 per person!

As the mother of tweenagers whose appetites never cease, I certainly can’t complain about those savings.

Sausage Casserole with Potatoes make the dressing
Marta Rivera

The Sauce Makes the Dish

But don’t allow the words “budget-friendly,” “economical,” or “frugal” to fool you into thinking this is a simple-tasting dish!

The complexity of the balsamic vinaigrette dressing and the addition of fresh rosemary level up the simple ingredients to a restaurant-quality entrée. The fact that it’s also a one-pot meal makes it even more appealing.

The vinaigrette dressing may be made a day or two in advance and stored in the fridge. I love keeping it in a glass Mason jar for easy mixing and pouring.

Marta Rivera

Shopping for Kielbasa

Kielbasa is the Polish word for sausage; in this case, a mixture of pork and beef that’s seasoned and brought together in sausage casing.

If you’re not a fan of pork, use beef kielbasa, instead. Switching out the type of sausage is also an option as there are many to choose from: smoked sausage, chicken or turkey sausage, and even vegan sausage! While the latter products may increase the overall cost of the dish, none of them will break the bank.

Unless otherwise instructed on the package, sausage may be frozen for up to six months, so stocking up when they come on sale is a great idea.

Marta Rivera

Shopping for Bell Peppers

I use colored bell peppers (red, orange, and yellow) in this recipe because they offer a sweet contrast to the tangy, savory vinaigrette.

You can use one variety of bell pepper, or all three as I do. Rosemary can also be switched out for thyme, tarragon, or parsley. The whole grain mustard gives an added bite to the dish. If you can’t find whole grain mustard, Dijon is a great substitute.

Smoked Sausage and Potato Bake layer the potatoes
Marta Rivera

How To Slice the Potatoes

You want the potatoes to be about 1/8-inch thick. If you’re not as proficient as you’d like to be with a knife, the use of a mandoline is an option for slicing the potatoes extra thin. This ensures they cook at the same rate as the rest of the ingredients.

Also, the potatoes go through a par-bake—a pre-baking on their own—before the rest of the dish is completely assembled. I’ve found this method creates a potato layer that is tender, but not soggy.

Marta Rivera

How To Assemble the Casserole

Other sausage casseroles combine the ingredients and bake. This one varies because of the par-bake on the potatoes. Instead the remaining ingredients are assembled on top of the semi-baked potatoes and the vinaigrette is drizzled on before the final bake. I prefer this method with this bake because it allows them to fully cook without overcooking the sausage and veggies.

More Easy Casseroles and Bakes

Sausage, Pepper, and Potato Bake

Prep Time 25 mins
Cook Time 60 mins
Total Time 85 mins
Servings 4 servings


  • 3 tablespoons olive oil, separated

  • 1 1/2 pounds Yukon gold potatoes (about 4 medium), washed and unpeeled

  • 1 teaspoon kosher salt, divided

  • 1/4 teaspoon freshly ground black pepper, divided

  • 5 tablespoons balsamic vinegar

  • 2 teaspoons Dijon mustard

  • 1 tablespoon fresh rosemary, chopped

  • 1 teaspoon whole grain mustard

  • 1 clove garlic, peeled and crushed

  • 1/2 red bell pepper, thinly sliced

  • 1/2 yellow bell pepper, thinly sliced

  • 1/2 orange bell pepper, thinly sliced

  • 1/2 white onion, thinly sliced

  • 14 ounces kielbasa (or Polish sausage), sliced into thin rounds about 1/4-inch thick


  1. Preheat the oven:

    Preheat the oven to 400°F and prep the pan.

    Pour 1 tablespoon of the olive oil into an 9- x13-inch baking dish and use your hand, or a brush, to grease the bottom and sides of the dish. This oil will help create a crisp crust on the bottom of the baked potatoes.

    Kielbasa Potato Bake add the oil to the pan
    Marta Rivera
  2. Slice and start baking the potatoes:

    Thinly slice the potatoes to about 1/8-inch thick; use a mandoline if needed. Try to keep the potato slices together as you cut as this makes it easier to assemble them in the dish.

    Fan the potatoes slightly in the dish, overlapping them like a fallen set of dominoes in the pan and creating four rows of potatoes. Sprinkle with 1/2 teaspoon of kosher salt and an 1/8 teaspoon of the black pepper.

    Bake the potatoes for 30 minutes.

    Sausage Potato Casserole slice the potatoes
    Marta Rivera
    Smoked Sausage and Potato Bake layer the potatoes
    Marta Rivera
  3. Make the vinaigrette:

    Combine the vinegar, 2 tablespoons olive oil, both mustards, rosemary, garlic, and the remaining salt and pepper in a glass jar with a tight-fitting lid (or in a bowl).

    Shake the ingredients together vigorously until combined. If you’re making the dressing in a bowl, use a whisk or an immersion blender to combine. Set this aside.

    Potato Casserole with Sausage and Peppers add the oil
    Marta Rivera
  4. Add the peppers, onions, and sausage, pour on the vinaigrette:

    Carefully remove the dish of potatoes from the oven and evenly arrange the peppers, then the onions, and lastly, the sausage, on top of the potatoes.

    Give the dressing another vigorous shake and pour evenly over the top of the casserole.

    Sausage Potato Casserole add the peppers
    Marta Rivera
    Smoked Sausage and Potato Bake layer the sausage
    Marta Rivera
    Smoked Sausage and Potato Bake add the dressing
    Marta Rivera
  5. Bake:

    Return the dish to the oven and bake for an additional 30 minutes, or until a knife inserted into the middle of a potato offers no resistance.

  6. Cool and serve:

    Remove the dish from the oven and cool for 5 minutes before serving.

    Leftovers will keep in a covered container for up to two days in the fridge.

    Potato Casserole with Sausage and Peppers bake the dish
    Marta Rivera
Nutrition Facts (per serving)
640 Calories
40g Fat
54g Carbs
18g Protein
Show Full Nutrition Label Hide Full Nutrition Label
Nutrition Facts
Servings: 4
Amount per serving
Calories 640
% Daily Value*
Total Fat 40g 52%
Saturated Fat 11g 57%
Cholesterol 72mg 24%
Sodium 1474mg 64%
Total Carbohydrate 54g 19%
Dietary Fiber 5g 20%
Total Sugars 10g
Protein 18g
Vitamin C 215mg 1,073%
Calcium 95mg 7%
Iron 4mg 21%
Potassium 1474mg 31%
*The % Daily Value (DV) tells you how much a nutrient in a food serving contributes to a daily diet. 2,000 calories a day is used for general nutrition advice.
Nutrition information is calculated using an ingredient database and should be considered an estimate. In cases where multiple ingredient alternatives are given, the first listed is calculated for nutrition. Garnishes and optional ingredients are not included.