This margarita-inspired sheet cake is my kind of summer dessert—bright, citrusy, and so easy to pull together. It’s got all the zesty fun of a margarita, but it’s family-friendly and alcohol-free, making it perfect for everything from taco night to a backyard birthday. Instead of using tequila, I bring in a few thoughtful elements that set it apart from a typical lime cake: olive oil in the batter for richness, fresh lime juice for that unmistakable tang, and a frosting topped with lime zest and a light sprinkle of salt that makes me say "that's such a good cake!". Personally, I love pairing this with a pitcher of margaritas (for the grownups) and a table full of tacos and good friends—it’s laid-back, zesty, and full of sunshine.
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ingredients you'll need
For the Cake
- 3 Cups All Purpose Flour
- 1 Tablespoon Baking Powder
- 1 Teaspoon Kosher Salt
- 1 Cup Unsalted Butter room temperature
- 1 ¾ Cup Granulated Sugar
- ⅓ Cup Olive Oil
- 3 Whole Eggs
- 2 Egg Whites
- 1 Tablespoon Vanilla Extract
- 1 Cup Milk
- 3 Tablespoons Lime Juice
- 3 Tablespoons of Lime Zest
- ¼ Cup Greek Yogurt
For the Frosting
- 3 cups powdered sugar 340g
- 1 cups unsalted butter softened
- ¼ cup heavy cream 60ml
- 1 tbsp vanilla bean paste 15g
- 1 large pinch of salt
- 1 Lime zested
- Sea Salt for garish
how to make this margarita sheet cake
Bake the Cake
- Preheat the oven to 325°F and grease a 9x13-inch pan.
- Zest and juice the limes. Set the zest aside.
- Stir the lime juice into the milk and let it sit while you prepare the batter.
- In a small bowl, rub the lime zest into the sugar with your fingers until it smells fragrant.
- In another bowl, whisk together the flour, baking powder, and salt.
- In a stand mixer, beat the butter and lime sugar until light and fluffy.
- Mix in the olive oil.
- Add the eggs and egg whites one at a time, mixing well after each.
- Mix in the vanilla and Greek yogurt.
- Add the dry ingredients and lime milk in alternating additions, mixing just until combined.
- Pour the batter into the pan and smooth the top.
- Bake for 40–45 minutes, or until a toothpick comes out clean.
- Let the cake cool completely before frosting.
Make the Frosting
- Place the room temperature butter in the bowl of a stand mixer fitted with the paddle attachment and on medium-high speed mix for 4–6 minutes until the color changes from yellow to white.
- While mixing, sift the powdered sugar using a fine-mesh sieve or sifter into a separate bowl.
- Turn off the mixer and add the powdered sugar in 1–2 cup increments, mixing on low speed after each addition until fully incorporated. This prevents a sugar cloud.
- Add the heavy cream, salt, and vanilla extract.
- Mix on medium speed for 30 seconds to incorporate.
- Increase to medium-high speed and mix for 5–10 minutes, pausing occasionally to scrape down the bowl.
- Remove any air bubbles by pressing and smoothing the frosting with a spatula or wooden spoon in a zig-zag motion prior to frosting your cake.
- Gently smooth the frosting on with an offset spatula. Garnish with freshly grated zest from 1 lime, a few lime slices for decoration, and a light sprinkle of salt on top.
more about this margarita sheet cake
If you want to lean into the margarita theme, feel free to add a splash of tequila to the frosting or brush a little over the baked cake before frosting—just for the adults! Serving it chilled on a hot day is also a win; the tangy frosting firms up and makes for a refreshing treat. And here’s a little secret: if you’ve garnished the cake with lime slices, give one a squeeze over your slice just before digging in. It adds a burst of brightness that takes every bite to the next level.
how to store this cake
This margarita sheet cake keeps beautifully for a couple of days—just cover it and store it at room temperature, or pop it in the fridge if it’s particularly warm out. The flavor actually deepens by day two, making it a great make-ahead option for gatherings. You can also freeze the cake, the frosting, or both (wrapped tightly in plastic), then bring them to room temperature before serving. Just wait to add the lime zest and garnish until the last minute for maximum brightness.
equipment you might need
Note: Some of the links below are affiliate links, which means I may earn a small commission if you make a purchase—at no extra cost to you. You can also explore my full list of trusted tools and partners, including brands I work with directly, here.
- Mixing bowls (I love these versatile glass stacking bowls)
- Stand mixer (Kitchen Aid or Bosch*)
- Measuring cups & spoons + Liquid Measuring Cup or a Kitchen Scale
- Rubber spatula & whisk
- Offset spatula & cake scraper (for smoothing batter and frosting)
- Parchment paper (for lining pans) the precut versions are great too
- Cooling rack (for cakes and glazes)
- Cake pans (round, square, or rectangle*) — [size/type]
- Cutting Board
- Rotating Cake Stand (this helps decorate!)
- Pastry Bags
- Sharp Chef's Knife
- Food thermometer (if temperature-sensitive frosting)
- Liquid Measuring Cup
- Measuring cups & spoons
- Kitchen Scale
- Mixing bowls (I love these versatile glass stacking bowls)
- Pastry brush (for greasing pans or applying syrups or glazes)
If you love this recipe, I’d be so grateful if you left a five star review—it truly means the world! And if you make it, I’d love to see—snap a photo and tag me on Instagram @cakejoie so I can share in the joy. Nothing makes me happier than seeing your beautiful bakes!
Margarita Sheet Cake
Ingredients
For the Cake
- 3 Cups All Purpose Flour
- 1 Tablespoon Baking Powder
- 1 Teaspoon Kosher Salt
- 1 Cup Unsalted Butter room temperature
- 1 ¾ Cup Granulated Sugar
- ⅓ Cup Olive Oil
- 3 Whole Eggs
- 2 Egg Whites
- 1 Tablespoon Vanilla Extract
- 1 Cup Milk
- 3 Tablespoons Lime Juice
- 3 Tablespoons of Lime Zest
- ¼ Cup Greek Yogurt
For the Frosting
- 3 cups powdered sugar 340g
- 1 cups unsalted butter softened
- ¼ cup heavy cream 60ml
- 1 tablespoon vanilla bean paste 15g
- 1 large pinch of salt
- 1 Lime zested
- Sea Salt for garish
Instructions
Cake
- Preheat the oven to 325°F and grease a 9x13-inch pan.
- Zest and juice the limes. Set the zest aside.
- Stir the lime juice into the milk and let it sit while you prepare the batter.
- In a small bowl, rub the lime zest into the sugar with your fingers until it smells fragrant.
- In another bowl, whisk together the flour, baking powder, and salt.
- In a stand mixer, beat the butter and lime sugar until light and fluffy.
- Mix in the olive oil.
- Add the eggs and egg whites one at a time, mixing well after each.
- Mix in the vanilla and Greek yogurt.
- Add the dry ingredients and lime milk in alternating additions, mixing just until combined.
- Pour the batter into the pan and smooth the top.
- Bake for 40–45 minutes, or until a toothpick comes out clean.
- Let the cake cool completely before frosting.
Frosting
- Place the room temperature butter in the bowl of a stand mixer fitted with the paddle attachment and on medium-high speed mix for 4–6 minutes until the color changes from yellow to white.
- While mixing, sift the powdered sugar using a fine-mesh sieve or sifter into a separate bowl.
- Turn off the mixer and add the powdered sugar in 1–2 cup increments, mixing on low speed after each addition until fully incorporated. This prevents a sugar cloud.
- Add the heavy cream, salt, and vanilla extract.
- Mix on medium speed for 30 seconds to incorporate.
- Increase to medium-high speed and mix for 5–10 minutes, pausing occasionally to scrape down the bowl.
- Remove any air bubbles by pressing and smoothing the frosting with a spatula or wooden spoon in a zig-zag motion prior to frosting your cake.
- Gently smooth the frosting on with an offset spatula. Garnish with freshly grated zest from 1 lime, a few lime slices for decoration, and a light sprinkle of salt on top.
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