Chili vs. Chile. It seems the words are used interchangeably throughout the American dialect. Researching the two words, did not clear up much of the confusion. If you google Chili, you will find it refers to a small tapered pod with capscaicin and can be fresh, dried or ground. Chile on the other hand is a bit more difficult to find a definition of other than it is a country. Some interpretations say that Chile is a dish consisting of Chilis and meat, such as Chile con Carne. What it boils down to is demographics and even at that, you may use whichever spelling you are most comfortable with.