White chocolate is a confection of sugar, cocoa butter and milk solids. The melting point of cocoa butter is high enough to keep white chocolate solid at room temperature. And yet low enough to allow white chocolate to melt in the mouth.

One distinction from other chocolate is that legally, white chocolate doesn't exist. Regular chocolate contains pulverized roasted cocoa bean, consisting of cocoa butter and cocoa solids. White chocolate contains no cocoa solids and thus technically is white confectionery coating.

Made of cocoa butter, milk, and sugar, the cocoa butter is deodorized to remove its strong taste. There are regulations that govern what may be marketed as white chocolate In the United States. Since 2004, white chocolate must be at least 20% cocoa butter (by weight) and at least 14% total milk solids, with at least 3.5% milk fat, and less than 55% sugar or other sweeteners.

White chocolate also includes lecithin, and flavorings, usually vanilla. Thus, white chocolate has a texture like that of chocolate but does not have the same taste. Unlike chocolate it does not contain caffeine. Some "white chocolate" is made with vegetable fat and not derived from cocoa. Vegetable fat-derived white chocolate is white in color, whereas cocoa butter-derived white chocolate is ivory-colored.