Gather all your ingredients and tools before starting for a smooth cooking experience.
Heat a heavy-bottomed pot over medium heat and add a splash of olive oil until it shimmers, about 1 minute.
Add the chopped onion to the pot and cook, stirring occasionally, until it becomes translucent and fragrant, about 5 minutes.
Stir in the minced garlic and cook for another minute until aromatic.
Add the ground turkey to the pot, breaking it apart with your spatula. Cook until browned and slightly crispy around the edges, about 8-10 minutes.
Sprinkle in the chili powder, cumin, smoked paprika, and cayenne pepper. Stir well and cook for 1 minute to toast the spices and release their aroma.
Pour in the canned diced tomatoes with their juices and add the drained beans. Stir everything together and bring to a gentle simmer.
Reduce the heat to low and let the chili simmer uncovered for about 15 minutes, stirring occasionally, until thickened and flavors meld.
Taste the chili and adjust the seasoning with salt and pepper. Squeeze in the lime juice for brightness and stir to combine.
Remove from heat and let the chili rest for 10 minutes to allow flavors to settle.
Serve hot, garnished with freshly chopped cilantro and an extra squeeze of lime if desired. Enjoy your comforting bowl of turkey chili!