The chilhuacle chili (Capsicum annuumL.) is a Mexican native variety whose production has been highly valuable because it is the main ingredient of the Oaxacan black mole, a typical Mexican dish. It is basically grown in the Cañada Region of the State of Oaxaca, Mexico, within the Tehuacán-Cuicatlán Biosphere Reserve. Importantly, it is cultivated under traditional agricultural systems, where a range of agronomic constraints associated with the production process and the incidence and severity of pests and diseases represent significant impediments that hinder the yield potential. Additionally, the genetic basis of the crop is highly restricted. Under such environmental and production conditions, the mean crop yield of chilhuacle chili can reach 1 t ha−1of dehydrated fruits, which can be used in the food, chemical, and pharmaceutical industries. In this review we summarize the current progress on chilhuacle chili cultivation and outline some crucial guidelines to improve production, as well as other research topics that need to be further addressed.