Step 1 - Combine Pineapple and Pudding Mix
Add the crushed pineapple with its juice (undrained) to your large mixing bowl. Add the instant pistachio pudding mix directly to the pineapple. Stir until well blended.
Why undrained pineapple matters- The pineapple juice provides the liquid that activates the instant pudding mix, eliminating the need for any added milk. This is specifically why the recipe works as a dairy-free dish without requiring a plant milk substitution step the pudding mix interacts with the fruit juice instead.
The mixture will thicken slightly as the pudding mix absorbs the pineapple juice this happens within a minute or two of stirring.
Step 2 - Fold in Everything Else
Add the mini marshmallows, chopped pecans, and dairy-free Cool Whip to the pineapple-pudding mixture. Fold gently with a spatula until everything is evenly combined the marshmallows and pecans should be distributed throughout, and the whipped topping should be folded in rather than stirred vigorously (which would deflate its airy texture).
The finished mixture should be a pale, mottled green color with visible flecks of pecan throughout and marshmallows distributed evenly.
Step 3 - Chill
Cover the bowl with plastic wrap and refrigerate for at least 2 hours. This chilling period allows the pudding to fully set, the marshmallows to soften slightly and meld into the texture, and the overall mixture to firm into the proper Watergate salad consistency thick, scoopable, and cohesive rather than loose and pourable.
Can you chill longer? Absolutely this salad holds well in the refrigerator and can be made several hours or even a day ahead.
Step 4 - Top and Serve
Just before serving, top with additional dairy-free whipped topping, a sprinkle of chopped pecans, a few more mini marshmallows, and maraschino cherries for the classic, festive presentation.