Wearing gloves, carefully remove seeds and membranes from habanero peppers. This reduces heat while maintaining flavor.

In a blender or food processor, combine seeded habanero peppers and pineapple chunks. Blend until completely smooth.

Pour the blended mixture into a medium saucepan. Add balsamic vinegar, molasses, garlic powder, onion powder, Worcestershire sauce, and liquid smoke flavoring. Stir thoroughly to combine all ingredients.

Bring the sauce to a simmer over medium-low heat. Cook for approximately 20 minutes, stirring occasionally, until the sauce has thickened to your desired consistency.

Allow the sauce to cool completely before transferring to airtight containers or mason jars. Refrigerate for up to two weeks.