Caramelized Onion Dip

By Jeri Mobley-Arias
December 21, 2021 | Updated on July 4, 2024

Caramelized Onion Dip is the ultimate party appetizer; a creamy mix that includes sautéed onions, sour cream, and spices. Serve this as a savory dip or spread with chips, sandwiches, and more.

For other delicious party dip recipes try my Jalapeño Popper Dip, French Onion Soup Dip, and Easy Rotel Dip next.

caramelized onion dip

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Get your potato chips ready for the best caramelized onion dip! If you’re familiar with the powdered version, this one is so much better. Caramelized onions are yellow onions slow-cooked in butter to enrich the sweet, savory depth of flavor. When they’re golden brown and jammy, you’ll know you’ve hit the sweet spot.

If there were no chips, crackers, or pita, I could eat this by the spoonful! So get in on the dipping action and treat yourself (and friends and family) to this amazing recipe.

Why This Recipe Works

  • Perfect for Any Occasion – This quintessential dip is perfect for game-day eats, holiday gatherings, parties, and movie nights.
  • Simple Ingredients No need to worry about all the additives the packaged version of onion dip is laden with. Here we use fresh ingredients so it’s better than storebought. (Yes, even the Trader Joe’s caramelized onion dip.)
  • So Versatile – I enjoy this as a dip but also as a spread. I’ve even used it as a main ingredient in other dishes!

What’s the difference between Caramelized Onion Dip and French Onion Dip?

French onion dip is a simple mix of a dried onion soup packet and sour cream. Caramelized onion dip is far more complex with deeper flavor due to the caramelized onions, sour cream, cream cheese, and mayonnaise, among other seasonings.

caramelized onion closeup

Tools You’ll Need

What is Caramelized Onion Dip made of?

Here is a breakdown of the ingredients for caramelized onion dip. For actual measurements, see the recipe card at the end of this post.

  • Butter – This amplifies the natural sweetness of the onions while imparting a smooth texture as they caramelize.
  • Olive oil – I find that this helps to prevent the butter from burning.
  • Yellow onions – These onions caramelize beautifully, developing a deep, sweet flavor that is the base of this dip.
  • Red pepper flakes – So this is optional but adds some heat to balance some of that sweetness.
  • Sour cream and cream cheese – Use both ingredients at room temperature for a smooth, creamy blend. They add a rich, tanginess.
  • Mayonnaise – This acts as a binding ingredient, giving the dip more body. It also complements the other creamy elements.
  • Worcestershire sauce – Add this for a pop of umami flavor. It’s my secret ingredient!
  • Seasoning – A blend of onion powder, garlic powder, kosher salt (I use Diamond Crystal brand), and freshly cracked black pepper to taste, which elevates the flavors.
  • Potato chips – What’s better for snacking? They are salty and crispy so they complement the savory dip.

Optional Garnish

  • Chives, chopped
caramelized onion and ingredients in a bowl

How To Make Caramelized Onion Dip

Below is a summary of how to make this caramelized onion dip recipe. For a complete and detailed list of steps, see the recipe card at the end of this post.

  1. Remove sour cream and cream cheese from refrigerator before cooking onions.
  2. In a cast-iron skillet over medium-high heat, add olive oil and butter. Once butter melts, add onions and lower heat to medium-low heat. Add red pepper flakes (if using) and sauté onions, stirring continually for 25 minutes then season to taste with kosher salt. Cook for an additional 20 minutes or until onions are caramelized. If pan becomes dry and onions stick to the skillet while cooking, add 1 tablespoon of water. Once cooked, set aside to cool to room temperature.
  3. In a bowl, mix sour cream, cream cheese, mayonnaise, worchestershire sauce, onion, and garlic powder. Mix until smooth to ensure there are no lumps and ingredients are evenly mixed. Next, season with freshly cracked pepper to taste and more kosher salt, if needed.
  4. Stir in cooled caramelized onions and mix well. Serve with potato chips or crudités.
caramelized onion dip mixed

Make Ahead

Simply cook onions until caramelized, allow them to cool to room temperature, and place in a food storage container for up to two days.

When you are ready to make the caramelized onion dip, leave all the ingredients on the counter until they come to room temperature. Then combine everything. Choose your chip of choice and dive in! 

Tips and Tricks

  • Caramelized onions take time. This recipe is very simple but it requires patience. It takes about 40 minutes for them to fully caramelize and there are no shortcuts (if there were, I’d tell you!). Low and slow is key here. I promise the result is SO worth the effort.
  • This tastes great when made a day ahead. Let it set in the fridge to give the flavors time to develop. If you don’t have that much time, make your caramelized onion dip at least 4-5 hours before serving.
  • Use room temperature ingredients. Be sure to use room temp sour cream and cream cheese, as this makes for easy mixing and a creamier dip.
  • Got extra dip? Store in an air-tight container for up to 2 days. Remove from refrigerator 30 minutes before serving.

What to Serve with Caramelized Onion Dip

  • Chips – Potato chips, tortilla chips, veggie chips, pita chips… you get the point! You can’t go wrong serving this with something crispy and salty. So pretzels are great too.
  • Veggies – For something healthier but still indulgent, pull out the celery sticks and carrots.
  • Sandwiches – Slather this on a cold-cut sandwich, burger, or fish sandwich. Get creative!

Frequently Asked Questions

What is the trick to caramelizing onions?

The key to caramelized onions is time. Cook them over low to medium heat, stirring continually for at least 25 minutes to prevent them from sticking to the pan. Turning up the heat doesn’t speed up the process, it just burns them.

Can I use other types of onions?

While yellow onions are ideal for their sweetness when caramelized, you can use white or red onions if that’s what you have on hand. The flavor profile will be slightly different but still tasty.

What compliments caramelized onions?

Caramelized onions complement a variety of dishes, adding a sweet and savory depth. Try them on burgers, soups, pizza, and sandwiches. They also pair well with roasted vegetables, pasta dishes, and even as a topping for steaks. And of course, they make this onion dip recipe irresistible.

caramelized onion dip closeup

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caramelized onion dip

Caramelized Onion Dip

5 from 4 votes
Caramelized Onion Dip is the ultimate party appetizer; a creamy mix that includes sautéed onions, butter, sour cream, and spices. Serve this as a savory dip or spread with chips, sandwiches, and more.
Prep Time 10 minutes
Cook Time 55 minutes
Total Time 1 hour 5 minutes
Servings 20 ounces
Author Jeri Mobley-Arias
Course Appetizer
Cuisine American

Equipment

  • Large skillet or dutch oven

Ingredients

  • 2 tablespoons butter
  • 1½ tablespoons olive oil
  • 2 lbs yellow onions (about 3 med-large size), halved and thinly sliced
  • ¼ teaspoon red pepper flakes, optional
  • 1¼ cup sour cream, room temperature
  • 4 ounces cream cheese, room temperature
  • ¼ cup quality mayonnaise
  • ½ teaspoon worcestershire sauce
  • ¾ teaspoon onion powder
  • ½ teaspoon garlic powder
  • Kosher salt to taste, I use Diamond Crystal brand
  • Freshly cracked black pepper to taste
  • Potato chips for serving

Optional Garnish

  • chives, chopped

Instructions

  • Remove sour cream and cream cheese from refrigerator before cooking onions.
  • In a cast-iron skillet over medium-high heat, add olive oil and butter. Once butter melts, add onions and lower heat to medium-low heat. Add red pepper flakes (if using) and sauté onions, stirring continually for 25 minutes then season to taste with kosher salt. Cook for an additional 20 minutes or until onions are caramelized. If pan becomes dry and onions stick to the skillet while cooking, add 1 tablespoon of water. Once cooked, set aside to cool to room temperature.
  • In a bowl, mix sour cream, cream cheese, mayonnaise, worchestershire sauce, onion and garlic powder. Mix until smooth to ensure there are no lumps and ingredients are evenly mixed. Next, season with freshly cracked pepper to taste and more kosher salt, if needed.
  • Stir in cooled caramelized onions and mix well. Serve with potato chips or crudités.
Keywords caramelized onion dip, caramelized onion dip recipe, how to make caramelized onion dip
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caramelized onion dip

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8 Comments

  1. Amanda says...

    5 stars
    This recipe was super easy and so delicious. Tastes better than store bought. Made it a few weeks ago, making it again for Christmas! A real crowd pleaser!

  2. Trish says...

    5 stars
    This was absolutely delicious. Sure, you can go the dip mix route, but this just tastes BETTER. It calls for a good amount of onions, but trust the recipe, it’s perfect. Once the onions cooked down, the amount was significantly smaller, but the right amount for the dip. Making it again for thanksgiving and Christmas dinner. Thanks, Jeri!

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jeri-mobley

Hey, I'm Jeri!

At Whisper of Yum, we explore ALL cuisines - comfort foods, classics, elevated originals. If you love food like me, I invite you to settle in to this place, where swoon-worthy food is attainable + inspo for your next meal awaits.

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