
This Island Banana Bread offers a tropical twist on classic banana bread, incorporating sweetened shredded coconut and macadamia nuts for a moist, flavorful loaf that’s perfect for breakfast or snacks. Baked in a 9×5-inch loaf pan at 350°F for about an hour, it features mashed ripe bananas for natural sweetness and tenderness. The recipe yields one loaf serving 8-10 people, with prep time around 15 minutes.
Ingredients
- 1 stick (½ cup) unsalted butter, at room temperature
- 1¾ cups all-purpose flour
- ¾ cup sweetened shredded coconut
- 4 ripe bananas, mashed
- 1 cup sugar
- 1 tsp baking powder
- 1 tsp baking soda
- ½ tsp salt
- 2 eggs
- 2 Tbsp milk
- ½ tsp vanilla extract
- 1 Tbsp butter, melted
- ¼ cup macadamia nuts, roughly chopped
Step-by-Step Instructions
Preheat the oven to 350°F and prepare a 9×5-inch loaf pan by spraying it with nonstick cooking spray and lining the bottom with parchment paper. This prevents sticking and ensures easy removal after baking.

In a large bowl, cream together the room-temperature unsalted butter and sugar using a whisk, handheld mixer, or stand mixer until light and fluffy, which takes about 2-3 minutes. Add the two eggs and ½ teaspoon vanilla extract, mixing until fully incorporated and smooth.

Stir in the mashed ripe bananas—choose ones that are overripe with dark brown spots for maximum sweetness and softness—until well combined. Fold in most of the sweetened shredded coconut (reserve a small amount for topping if desired), distributing it evenly for that signature island texture throughout the batter.

In a separate bowl, whisk together the all-purpose flour, baking powder, baking soda, and salt to ensure even distribution of leavening agents. Gently fold the dry ingredients into the wet mixture using a spatula to avoid overmixing, which can lead to a dense loaf. Add the 2 tablespoons of milk to achieve the perfect batter consistency—moist but not runny.
Pour the batter into the prepared loaf pan, smoothing the top with the spatula for even baking. Bake for 50 minutes, then check doneness with a toothpick inserted in the center—it should come out with a few moist crumbs.
While baking, prepare the topping: melt 1 tablespoon of butter. After 50 minutes, brush the top of the loaf with the melted butter to act as “glue,” then sprinkle the roughly chopped macadamia nuts evenly over the surface, pressing lightly to adhere. Return to the oven for another 10 minutes until the nuts are golden and crispy and a toothpick tests clean.

Remove from the oven and let the bread cool in the pan for 20-25 minutes on a wire rack. Invert onto a plate to release, then cool completely before slicing to allow flavors to meld and structure to set.
Comprehensive Baking Tips

Achieving the perfect Island Banana Bread starts with ingredient selection and preparation, where ripe bananas play a starring role. Opt for bananas that are heavily speckled or nearly black, as their high sugar content from starch breakdown intensifies flavor and guarantees a tender crumb without excess added sweetness.
If fresh overripe ones aren’t available, freeze whole bananas in bunches—they thaw quickly and release moisture like ice packs, mimicking the ideal texture for mashing. For the coconut, sweetened shredded varieties provide chewiness and subtle caramel notes that evoke tropical shores; toast a small extra batch separately if you crave deeper nuttiness, but incorporate sparingly to avoid overpowering the banana base.
Room-temperature butter is non-negotiable for creaming with sugar, as cold butter leads to uneven mixing and a greasy batter. Soften it by cutting into small pieces and letting it sit for 30 minutes, or microwave in 5-second bursts on low power, ensuring it doesn’t melt fully.
When adding eggs, introduce them one at a time to prevent curdling, whisking vigorously for emulsion— this traps air for a lighter loaf.
Milk adds necessary hydration; whole milk yields richer results, but any type works since bananas contribute ample moisture. Overmixing dry ingredients into wet ones develops gluten, toughening the bread, so use the “fold until just combined” method, stopping when no flour streaks remain visible.
Baking technique elevates this recipe from good to exceptional. The two-stage bake—50 minutes uncovered, then 10 with toppings—prevents nut scorching while allowing butter-brushed macadamias to crisp beautifully on top.
Their waxy nature shines when roasted exposed, providing crunch that contrasts the soft interior; avoid stirring them into the batter, as they lose that desirable snap. Monitor closely after the 50-minute mark, rotating the pan halfway for even browning, especially in ovens with hot spots. Altitude adjustments may be needed above 3,000 feet—increase flour by 1-2 tablespoons and reduce baking powder slightly to combat rising issues.
Post-bake cooling is crucial for texture and flavor development. The initial 20-25 minutes in the pan allows steam to escape gradually, preventing a soggy bottom, while full cooling firms the structure for clean slices. Wrap tightly in plastic once cool to retain moisture over days; it tastes even better on day two as coconut and banana flavors marry. Storage lasts 3-4 days at room temperature or freezes beautifully for up to three months—slice first for grab-and-go portions.
Customization keeps this versatile: swap macadamias for pecans or walnuts for budget-friendly crunch, or infuse rum extract for authentic island flair without alcohol. For dietary tweaks, use gluten-free 1:1 flour blend and dairy-free butter/milk, reducing bake time by 5 minutes.
Experiment with add-ins like chocolate chips or pineapple chunks, but maintain batter ratios to avoid sinking. Serve toasted with cream cheese or alongside coffee—the coconut’s texture pairs divinely with bold roasts.

Variations and Serving Ideas
- Nut-Free Version: Omit macadamias and top with extra coconut or chocolate drizzle.
- Spiced Twist: Add ½ tsp cinnamon or cardamom to dry ingredients for warmth.
- Mini Loaves: Divide batter into 3 mini pans, bake 35-40 minutes total.
Slice thick for breakfast spreads or thin for tea time. Pair with salted butter to balance sweetness or yogurt for a lighter option.