Improved granola and granola products containing chocolate and their methodsofpreparation are provided. The methods include adding chilled chocolatecontaining dextroseto granola ingredients prior to the addition of a sugar binder formulated toperform asrequired at about 29 ¨ 32°C (85 - 90°F) or colder. The methodsinclude baking granolacontaining chocolate, cooling and packaging granola products such as breakfastcereals andgranola bars. By using chilled chocolate and the sugar binder formulated forthis method theproblems of chocolate separation, smearing and off-flavors can be avoided ingranolaproducts containing chocolate.