Caramelized Onion and Bacon Dip

January 16, 2026
Serves 4–6

Caramelized Onion and Bacon Dip is a creamy, flavorful treat that combines sweet, slow-cooked onions with crispy, smoky bacon. It’s smooth, rich, and packed with a mix of textures that everyone seems to love. This dip is perfect for parties, game day, or any time you need something tasty to snack on with chips or crackers.

I often make this dip when friends come over because it’s always a hit. The caramelized onions add a depth of sweetness that balances perfectly with the salty bacon, and I like adding a little bit of cream cheese and sour cream to make it extra smooth and creamy. One tip I’ve learned is to cook the onions low and slow to bring out their natural sweetness—that really makes the dip stand out.

My favorite way to enjoy this dip is with crunchy pita chips or fresh veggie sticks. It’s great to bring out when guests arrive because it’s easy to prepare ahead of time and I don’t have to worry about it while socializing. Whenever I serve it, I’m always happy to see how quickly people go for seconds!

Key Ingredients & Substitutions

Onions: Yellow onions work best here because they caramelize nicely and develop a sweet, rich flavor. If you don’t have yellow onions, sweet onions or even shallots are good alternatives.

Bacon: Bacon adds smoky crunch. For a healthier twist, try turkey bacon or even smoked tempeh if you want a vegetarian option. Just be sure to crisp it well for texture.

Cream Cheese & Sour Cream: These give the dip its creamy base. You can swap sour cream for Greek yogurt to lighten it up, but keep the cream cheese for the best texture and tang.

Cheddar Cheese: Sharp white cheddar brings bold flavor and meltiness. You can substitute with Monterey Jack or Gruyère for a different cheesy note.

How Do You Get Perfectly Caramelized Onions Without Burning Them?

Caramelizing onions slowly is key to developing deep sweetness without burning. Here’s how I do it:

  • Use medium-low heat and a wide pan for even cooking.
  • Add a pinch of salt to draw out moisture.
  • Stir occasionally but don’t rush—let the onions soften and turn golden over 25-30 minutes.
  • If they start sticking, add a splash of water or lower the heat.

Patience here makes all the difference, and those onions end up tender, sweet, and perfect for your dip.

Equipment You’ll Need

  • Large skillet – Great for caramelizing onions evenly without crowding.
  • Medium frying pan – Perfect for crisping bacon separately.
  • Mixing bowl – To combine the creamy ingredients smoothly.
  • Baking dish (8-inch round or square) – Holds the dip for baking and serving.
  • Wooden spoon or spatula – Helps stir onions gently without mashing them.

Flavor Variations & Add-Ins

  • Swap bacon for pancetta or smoked ham for a different smoky flavor.
  • Add chopped fresh rosemary or sage instead of thyme for an herbal twist.
  • Mix in shredded mozzarella or pepper jack for a milder or spicier cheese touch.
  • Toss in some chopped roasted red peppers or jalapeños for a pop of color and heat.

Easy Caramelized Onion Bacon Dip

Caramelized Onion and Bacon Dip

Ingredients You’ll Need:

  • 4 large onions, thinly sliced
  • 6 slices bacon, chopped
  • 8 oz cream cheese, softened
  • 1 cup sour cream
  • 1 cup shredded sharp white cheddar cheese
  • 1/2 cup mayonnaise
  • 1 teaspoon fresh thyme leaves (plus extra for garnish)
  • 1 tablespoon olive oil
  • Salt and black pepper, to taste
  • Crackers or toasted baguette slices, for serving

How Much Time Will You Need?

This recipe takes about 15 minutes of prep time, around 25-30 minutes to caramelize the onions, and 20 minutes baking time. In total, expect about 1 hour from start to finish.

Step-by-Step Instructions:

1. Caramelize the Onions:

Heat olive oil in a large skillet over medium-low heat. Add the sliced onions and stir to coat. Cook slowly, stirring occasionally, until onions are deeply golden and caramelized, about 25-30 minutes. Add a pinch of salt to help draw out moisture and enhance sweetness.

2. Cook the Bacon:

While the onions cook, place chopped bacon in a skillet over medium heat. Cook until crispy, then drain on paper towels and set aside.

3. Mix the Creamy Base:

In a mixing bowl, combine softened cream cheese, sour cream, mayonnaise, shredded cheddar cheese, and thyme leaves. Stir or beat until smooth and creamy.

4. Combine Filling Ingredients:

Fold half of the caramelized onions and half of the crispy bacon into the creamy mixture. Taste and season with salt and black pepper as needed.

5. Assemble and Bake:

Spread the mixture into a baking dish evenly. Top with the remaining onions and bacon. Bake in a preheated 350°F (175°C) oven for about 20 minutes, until hot and bubbly.

6. Garnish and Serve:

Remove from the oven, sprinkle with extra fresh thyme if you like, and serve warm with crackers or toasted baguette slices for dipping. Enjoy!

Equipment You’ll Need

  • Large skillet for caramelizing onions
  • Medium pan for cooking bacon
  • Mixing bowl
  • Wooden spoon or spatula
  • Baking dish (about 8-inch round or square)

Flavor Variations & Add-Ins

  • Swap bacon for pancetta or smoked ham for a different smoky flavor.
  • Add chopped rosemary or sage instead of thyme for an herbal twist.
  • Mix in mozzarella or pepper jack cheese for different flavor profiles.
  • Try adding roasted red peppers or jalapeños for some color and heat.

Can I Use Frozen Onions for This Dip?

It’s best to use fresh onions because frozen ones often release extra water and won’t caramelize properly. If you only have frozen, make sure to thaw and drain them well before cooking.

Can I Prepare This Dip Ahead of Time?

Absolutely! You can caramelize the onions and cook bacon a day before, then assemble and bake the dip just before serving. Store the prepared mixture in the fridge covered until ready to bake.

How Should I Store Leftovers?

Place any leftover dip in an airtight container and refrigerate for up to 3 days. Reheat gently in the oven or microwave until warmed through.

What Can I Serve with Caramelized Onion and Bacon Dip?

Crackers, toasted baguette slices, pita chips, or fresh veggie sticks like celery and carrots all make great dipping options!

About the author
Savannah

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