Caramelized Onion Dip Recipe

By Amy Dong
Updated Feb. 12, 2024

This Caramelized Onion Dip recipe is super easy to make and is a crowd favorite. This party dip loves to show up on game days, holidays, and gatherings. It’s deliciously irresistible with potato chips, baguette slices, and pita chips.

A bowl of caramelized onion dip garnished with caramelized onions and served with chips and crackers. — This Caramelized Onion Dip Recipe is perfect for game days since it can be made ahead of time!

Why This Recipe Stands Out

We all love a good dip, but our Caramelized Onion Dip is a game-changer. It’s the perfect blend of creamy and savory, making it the ideal recipe for gatherings. Here’s why this recipe stands out:

Simple: This recipe uses simple, easy-to-find ingredients, and it’s quick to put together, just like our Easy Cheesy Buffalo Chicken Dip.
Make-Ahead: Like our Spinach Yogurt Dip and our Easy Spinach Dip, this caramelized onion dip can be made ahead of time, saving you stress on the day of your event.
Versatile: This dip pairs perfectly with potato chips, baguette slices, pita chips, or even veggie sticks. It’s the perfect party appetizer!
Customizable: You can customize this dip with your favorite toppings. We love it with freshly chopped chives and crumbled bacon.
Flavorful: The combination of caramelized onions, Greek yogurt, and cream cheese results in a dip that’s packed with flavor. It’s absolutely delicious!

Key Recipe Ingredients

Yellow Onions – Onions are the star of this recipe, and they are peeled and chopped to release their sweet and savory flavor.
Greek Yogurt – This adds a tangy creaminess to the dip, making it wonderfully rich and smooth.
Cream Cheese – The cream cheese is softened and mixed with the yogurt to create a velvety base for the dip.
Worcestershire Sauce – A dash of Worcestershire sauce adds depth and savoriness to the dip.
Finely Grated Parmesan Cheese – This is the key ingredient for the flavor of the dip. It adds a salty, umami kick that takes the dip to the next level.

Substitutions And Variations

This Caramelized Onion Dip is a crowd-pleaser, but we understand that everyone’s preferences are different. Here are some tasty variations and substitutions you might want to consider.

Onions: While yellow onions are our go-to, feel free to experiment with other types of onions. Red onions or sweet Vidalia onions can add a different flavor profile to the dip. Try caramelizing shallots for a milder, sweeter flavor.
Yogurt: If you prefer a thicker dip, substitute the Greek yogurt with sour cream. For a dairy-free option, use a coconut or almond-based yogurt.
Cheese: Switch up the type of cheese for a different flavor. Try sharp cheddar cheese for a tangy kick or blue cheese for a bold, pungent flavor. For a vegan option, nutritional yeast can add a cheesy flavor.
Toppings: This dip is delicious on its own, but feel free to get creative with your toppings. Freshly chopped herbs, crumbled feta cheese, or crumbled bacon like we add in our Cheesy Tater Tor Breakfast Casserole.

Step-By-Step Recipe Instructions

In a large skillet, heat olive oil over medium-high heat. Add onions, garlic powder, salt, sugar, and pepper. Stir well to combine. Cook for 15-20 minutes, stirring every 2-3 minutes.
In a bowl, combine very soft cream cheese and yogurt. Use a whisk to blend until smooth. Add Worcestershire and parmesan, stirring well. Add caramelized onions and stir to incorporate. Top with chives and bacon, if desired.

For full list of ingredients and instructions, see recipe card below.

How To Prep Ahead

This Caramelized Onion Dip is a crowd-pleaser and we have some great tips to make it even more convenient for you. Take a look at our favorite prep-ahead strategies for this recipe:

Caramelized Onions: The caramelized onions can be prepared ahead of time. Simply follow the recipe instructions to caramelize the onions, let them cool, and then store them in an airtight container in the fridge for up to 3 days. When you’re ready to make the dip, just take them out and stir them into the dip mixture.
Make Ahead: The entire dip can be made a day ahead of time. Simply cover and refrigerate until you’re ready to serve. This is a great option if you’re planning for a party or gathering.

caramelized onion dip in a bowl with chips — It’s delicious with potato chips, baguette slices, and pita chips and works great for game days!

What To Serve With Caramelized Onion Dip

Vegetables

This Caramelized Onion Dip is a perfect match for homemade potato chips. The crunchy, salty chips complement the creamy, savory dip beautifully.
If you’re looking for a healthier option, try serving this dip with a variety of fresh veggie sticks. Carrots, celery, bell peppers, and cucumber all taste great with it.

Bread

Bread works great with this dip to make an ideal appetizer for any occasion. Try serving it with baguette slices, crostini, or even pita bread.

Sandwiches

This dip is so flavorful that it can even be used as a spread. Try it on a sandwich or as a burger spread. It’s also a great addition to a charcuterie board.

Commonly Asked Questions

What type of onions should I use for this dip?

You can use any type of onion for this recipe, but we recommend using yellow onions. They have a mild, sweet flavor that is perfect for caramelizing.

Can I make the caramelized onions ahead of time?

Yes, you can! In fact, we recommend it. You can prepare the caramelized onions up to 3 days in advance. Simply store them in an airtight container in the fridge. When you’re ready to make the dip, bring the onions to room temperature and give them a quick stir to freshen them up.

Can I use low-fat or fat-free cream cheese for this dip?

Yes, you can use low-fat or fat-free cream cheese, but we recommend using regular cream cheese for the best flavor and texture.

What can I do if my cream cheese is not soft enough?

If your cream cheese is not soft enough, you can microwave it in 30-second increments until it reaches a very-soft, lukewarm consistency. This will make it easier to blend with the other ingredients and will result in a smoother texture.

How long does this caramelized onion dip last?

It can be kept in the refrigerator for up to 3 days. Be sure to store it in an airtight container to maintain its freshness.

Did you make this?

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