No. The key difference between caramel and butterscotch is that caramel sauce is made with granulated sugar (also called white sugar) and this sauce is made with brown sugar. Butterscotch sauce uses dark brown sugar and lots of butter for an extra buttery flavor, while caramel cooks granulated sugar until it starts to brown and adds a bit of butter for richness, but much less than butterscotch, and contains no molasses. If you love the taste of butterscotch chips in baked goods, then you'll love this sauce!