Add ketchup, honey, bourbon, brown sugar, apple cider vinegar, Worcestershire sauce, and Dijon mustard to a medium saucepan.
Stir in smoked paprika, garlic powder, onion powder, black pepper, cayenne pepper, and salt until all ingredients are well combined.
Place the saucepan over medium-low heat and bring the mixture to a gentle simmer.
Cook for 20–30 minutes, stirring occasionally, until the sauce becomes thicker and develops a smooth, glossy texture.
Check the consistency by coating the back of a spoon. The sauce should cling lightly without being too thick.
Remove from heat and allow the sauce to cool before serving. The flavor will continue to develop as it rests.
Brush onto grilled meats during the final minutes of cooking or serve as a dipping sauce.