Caramelized Onion Dip

Sweet and tangy caramelized onions shine in this caramelized onion dip. Pair with you favorite vegetables or chips for a perfect party appetizer. 

This content contains affiliate links. As an Amazon Associate I earn from qualifying purchases.

Jump to recipe

A few weeks ago some friends and I stayed at a cabin in the Smoky Mountains and for dinner we put together some homemade pizzas. As topping for one we were caramelizing onions – or so we thought. As I took a turn stirring the onions I noticed that they were pretty dry and had a chalky white residue. A couple more stirs and the end of the spatula broke off. Evidently it was not a heat proof spatula and it had been melting into the onions the entire time. I have not seen a non-heat proof spatula in years and it didn’t occur to any of us to check it to be sure. Alas those onions were tossed out but we still made some amazing pizzas.

Rest assured that when I cooked the onions for this caramelized onion dip I used a proper heatproof silicone spatula. Thank goodness too because this dip was so much more than I has imagined. Taking the time to properly caramelize the onions is well worth your time as it knocks the pants off of any dip you could buy from the grocery store. Dare I say, the best onion dip I’ve ever had. It would be great along with some easy corn salsa, too.

You don’t have to make yours with reduced fat cream cheese and Greek yogurt if your prefer the full fat cream cheese and sour cream, but I sometimes like to swap out slightly healthier ingredients, especially in situations where I feel like it can be done without sacrificing the end product. Personally I did not think you could tell that this caramelized onion dip had a secret.

CARAMELIZED ONION DIP

Print

Yield: 2 cups Prep Time: 10 Minutes Cooking Time: 50 Minutes 50 Minutes

Nutrition facts: 200 calories 20 grams fat

Ingredients

• 1 Tbsp olive oil
• 1/2 Tbsp salted butter
• 2 medium vidalia onions, chopped (about 3 cups)
• 1 tsp salt, divided
• 2 tsp brown sugar
• 8 oz. reduced fat cream cheese, room temperature
• 1 cup plain Greek yogurt (or sour cream)
• 1 tsp black pepper
• 1/2 garlic powder

Directions

1. In a large skillet, add olive oil and butter over medium-low heat. Once melted, add in chopped onions with 1/4 teaspoon of salt, and stir until coated in the oil mixture. Cover and cook for 45 minutes, stirring every 5-10 minutes, or until the onions are golden-brown, are jammy in texture, and smell sweet. After 45 minutes, stir in 1 teaspoon of brown sugar and let cook for 5 minutes more. Remove onions from heat and stir in remaining brown sugar.
2. In a large bowl, blend together cream cheese, yogurt, remaining salt, pepper, and garlic powder. Fold in onions, taste and add more seasoning if desired. Serve with chips, pretzels or veggies.

Source: Adapted from How Sweet It Is.

Post updated 2/28/2026. Photos above and below and the originals.