1. pod with strong flavor: a narrow red or green hot-tasting pod produced by various types of capsicum pepper plant. Use: flavoring sauces and relishes.
[Early 17th century. Via Spanish chile< Nahuatl chilli]
Spelling Note
chili or chilly? Do not confuse the spelling of chili and chilly, which sound similar. Chili is a noun denoting a hot pepper, as in chili con carne, chili powder. Chilly is an adjective meaning "cold," as in chilly weather, a chilly reception.