Caramelized Onion Dip

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There’s something undeniably comforting about a creamy, rich dip packed with deep, golden, sweet onions. This Caramelized Onion Dip isn’t just another party snack—it’s a bold upgrade from store-bought options, full of homemade flavor. The onions are slowly cooked until buttery and jammy, then folded into a smooth base of sour cream and cream cheese that turns every bite into a savory delight.

Whether you’re hosting a game night, looking for a crowd-pleaser for your next BBQ, or just want a reason to eat chips for dinner, this dip has your back. It’s the kind of dip that disappears quickly, with guests scraping the bowl clean and asking if there’s more. Pair it with chips, crackers, or fresh veggies—no matter the vehicle, it’s always a hit.

Why You’ll Love This Caramelized Onion Dip

This dip is the perfect mix of sweet and savory. Caramelized onions add a mellow richness that balances beautifully with the tang of sour cream. It’s incredibly versatile, works with nearly any appetizer spread, and tastes even better after chilling for a few hours, which means it’s a dream for prepping ahead of time.

It also uses just a handful of ingredients, and the technique is simple enough that once you make it, you’ll never go back to premade dips again. You control the salt, sweetness, and creaminess—making it just the way you love.

What’s the Best Onion for Caramelized Onion Dip?

Yellow onions are typically the best choice for this dip. They caramelize into a golden, sweet perfection without becoming too sharp or bitter. If you want a sweeter twist, try adding a Vidalia onion into the mix. Red onions can work in a pinch, but they tend to bring more bite and less of the mellow sweetness that makes this dip shine. No matter which you choose, take your time with the caramelization—that’s where all the flavor builds.

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Ingredients for the Caramelized Onion Dip

Caramelized Onion Dip is made with just a few ingredients, but each one plays a crucial role in creating that rich, crave-worthy flavor.

• Yellow onions
  The star of the show, yellow onions become sweet and jammy when caramelized slowly.
• Butter
  Used to gently cook the onions, butter brings a silky richness that adds depth to the dip.
• Olive oil
  Combining butter with a little olive oil helps prevent burning and adds its own layer of flavor.
• Sour cream
  The cool, tangy base that gives the dip its signature creaminess.
• Cream cheese
  Softened cream cheese thickens the dip and balances the sweetness of the onions.
• Garlic powder
  Adds subtle sharpness that rounds out the flavors without overpowering.
• Salt and black pepper
  Essential for seasoning and enhancing the natural sweetness of the onions.
• Chives (optional)
  Sprinkle chopped chives on top for a fresh contrast and a hint of color.

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How To Make the Caramelized Onion Dip

Step 1: Slow-Cook the Onions

Start by slicing the yellow onions thinly. In a large skillet, heat the butter and olive oil over medium-low heat. Add the onions and cook slowly for 30 to 40 minutes, stirring occasionally. You want them to become deeply golden and soft, not crispy or burnt. Patience is key—rushing will miss out on all that deep, sweet flavor.

Step 2: Let the Onions Cool

Once caramelized, remove the onions from heat and let them cool to room temperature. This ensures they won’t melt your creamy base when mixed.

Step 3: Make the Creamy Base

In a bowl, stir together the softened cream cheese and sour cream until smooth and fluffy. Add garlic powder, salt, and pepper to taste. If you like a tangier flavor, you can add a small splash of lemon juice.

Step 4: Mix In the Onions

Fold the cooled onions into the creamy base. Stir gently until fully incorporated. Taste and adjust the seasoning as needed. Cover and refrigerate for at least an hour so the flavors can meld.

Step 5: Garnish and Serve

When ready to serve, transfer to a bowl and sprinkle with fresh chives. Serve with chips, crackers, or crisp veggies.

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How to Store and Serve Caramelized Onion Dip

This dip serves around 6 to 8 people as an appetizer, making it perfect for small gatherings or as part of a larger spread. You can serve it cold or bring it to room temperature for a softer texture.

Store any leftovers in an airtight container in the refrigerator for up to 4 days. The flavor continues to develop over time, making it even better the next day. Just give it a stir before serving again.

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What to Serve With Caramelized Onion Dip?

Potato Chips

The salty crunch of kettle-cooked chips is the perfect contrast to the creamy, savory dip.

Toasted Baguette Slices

Thin slices of toasted baguette give the dip a sturdy, elegant base—great for parties.

Crinkle-Cut Veggies

Celery sticks, bell pepper strips, or cucumber slices add freshness and a satisfying snap.

Soft Pretzels

Warm, doughy pretzels dipped in this onion spread are addictive and unexpected.

Pita Chips

Thicker than regular chips, pita chips bring a nutty crunch that pairs well with the richness of the dip.

Chicken Tenders

A surprising but welcome companion. Dip crispy tenders into this for a party-style upgrade.

Mini Burgers

Use the dip as a spread on sliders—it’s fantastic paired with beef or turkey patties.

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Want More Dip Ideas That Wow?

If this Caramelized Onion Dip is your kind of appetizer, check out these other bold and satisfying dip options from Luna Meals:

• Try the creamy richness of our Creamy Mushroom Sauce for Steak to drizzle or dip.
• This Slow Cooker Lipton Onion Potatoes is another savory side you’ll fall in love with.
• Get cozy with our ultra-comforting Irresistible Crock Pot Crack Potato Soup that delivers warm, cheesy flavor in every bite.
• Looking for a crispy snack? These Crispy Parmesan Zucchini Rounds are perfect on their own or alongside dips.
• Don’t skip our easy Greek Lemon Chicken Soup Avgolemono if you love tangy, creamy comfort foods.

Save This Recipe For Later

📌 Save this recipe to your Pinterest appetizer board so you can come back to it any time.

Let me know how yours turned out in the comments! Did you caramelize your onions for longer for extra sweetness? Or maybe added a spicy kick? I’d love to hear your spin on it.

Explore beautifully curated health-boosting dips and comfort recipes on Luna Meals on Pinterest and discover your next favorite snack.

Conclusion

Caramelized Onion Dip is one of those recipes that feels indulgent but is simple at heart. With just a bit of time and some pantry staples, you get a restaurant-worthy dip that’s perfect for every season and occasion. Whether you’re scooping it onto a chip or spreading it over toast, the creamy, savory richness never fails. Make it once, and it’ll become your go-to.

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