Vanilla extract is a solution made by macerating and percolating vanilla pods in a solution of ethanol and water. It is considered an essential ingredient in many Western desserts, especially baked goods like cakes, cookies, brownies, and cupcakes, as well as custards, ice creams, and puddings. Although its primary flavor compound is vanillin, pure vanilla extract contains several hundred additional flavor compounds, which are responsible for its complex, deep flavor. By contrast, artificial vanilla flavor is solely made up of artificially-derived vanillin, which is frequently made from a by-product of the wood pulp industry. Because of the way that vanilla extract is made (i.e. by macerating naturally brown vanilla beans in alcohol), there is no possible way for it to be colorless or clear. Therefore, any clear vanilla flavoring is artificial.

Vanilla extract is the most common form of vanilla used today. Madagascar, Mexican, Tahitian, Indonesian, and Ugandan vanilla beans are the main varieties used today. The term "Bourbon vanilla" refers to the vanilla beans' provenance as being from the Bourbon Islands, most commonly Madagascar but also Mauritius and Réunion. The name comes from the period when the island of Réunion was ruled by the Bourbon kings of France and has no relation to Bourbon whiskey.