Cayenne pepper is a hot powder made of various tropical chilies, particularly the cayenne chili sold in a 1 lb. bag. It is used as a spice in cooking spicy dishes in multiple cuisines from Asia and Central and South America. Cayenne chiles are generally sold dried and used in soups and sauces in powdered form or whole.It derives its name from a town in French Guiana on the northeast coast of South America where it is highly cultivated.