In a medium saucepan over medium heat, melt the butter. Add the flour, garlic powder, black pepper, and salt and whisk to combine. Cook until the flour is lightly golden brown, about 1 minute.
Add the tomato sauce, diced tomatoes, and sugar and stir to combine. Bring to a simmer and cook for 5 minutes, or until thickened.
Serve warm over biscuits, toast, or other breakfast favorites.
Interesting Facts
Tomato gravy is a traditional Southern dish that is often served as a side dish with breakfast.
Tomato gravy is a great way to use up leftover tomatoes.
The longer you cook tomato gravy, the thicker and richer it will become.