Prepare the marinade by mixing lime juice, minced garlic, chopped scotch bonnet, thyme, and allspice in a bowl until well combined.
Cut the chicken thighs into bite-sized pieces and add them to the marinade, ensuring each piece is coated. Cover and refrigerate for at least 30 minutes or overnight for deeper flavor.
Heat vegetable oil in a cast iron skillet over medium heat until shimmering and slightly fragrant.
Add the marinated chicken pieces to the skillet, spreading them out in an even layer. Cook until golden brown on all sides, about 5-7 minutes, then remove and set aside.
In the same skillet, add the chopped onion and sauté until translucent and fragrant, about 3 minutes—listen for a gentle sizzle and watch for softening.
Pour in the coconut milk and add the diced tomatoes if using; stir to combine, scraping up any browned bits from the bottom of the pan.
Add the cooked chicken back into the skillet, stirring to coat with the sauce. Bring to a gentle simmer, then reduce heat to low.
Simmer uncovered for about 20-25 minutes, until the sauce thickens slightly and the chicken is cooked through—internal temperature should reach 165°F (75°C).
Taste the sauce and adjust seasoning if needed—add a squeeze of lime or a pinch of salt to brighten flavors.
Once the sauce has thickened and the chicken is tender, turn off the heat and let the stew rest for 5 minutes to allow flavors to meld.
Serve the Caribbean chicken stew hot, with rice or crusty bread, and enjoy the burst of bold, lively flavors and comforting textures.