Let’s make Banana Pepper Jelly! Home canning pepper jelly is a new adventure for me — but I’m willing to give it a try. My Community Supported Agricultural (CSA) basket was full of large banana peppers. These peppers are mild, with a distinctive flavor. I don’t often use banana peppers in cooking and hate to throw them away. So making jelly seemed like a good solution. The jelly turned out so well that I made a batch of Hot Jalapeno Pepper Jelly, too.