I have a serious weakness for any party snack that involves a big bowl in the center of the table and an endless pile of salty chips. This Caramelized Onion Dip is exactly that kind of trouble—the kind you welcome. It’s creamy, rich, and layered with sweet, deeply browned onions that taste like French onion soup met its soulmate in a snack bowl.

When I make this dip, the entire house fills with the smell of slowly sizzling onions, butter, and a hint of garlic. By the time the onions are bronzed and jammy, everyone is already hovering around the kitchen asking when they can dive in. Set this out with chips, crostini, or fresh veggies and watch it disappear faster than anything else on the appetizer table.

What Makes This Caramelized Onion Dip So Good?

For me, the magic of this dip comes from patience. Instead of throwing raw onions straight into the mix, I take the time to cook them low and slow on the stovetop until they turn golden, soft, and sweet. That transforms them from sharp and pungent to mellow and almost jam-like, which gives the dip a deep, savory sweetness you can’t fake with shortcuts.

I also balance those sweet onions with a trio of creamy ingredients—cream cheese, sour cream, and a touch of mayonnaise—plus a few savory boosters like Worcestershire sauce and garlic. Fresh chives and plenty of black pepper sharpen everything up at the end. The result is a dip that tastes restaurant-level but is absolutely doable in a home kitchen.

Ingredients for Caramelized Onion Dip

Yellow onions
I like using standard yellow onions for this recipe because they caramelize beautifully and develop a natural sweetness without turning too mild. They’re the star of the show, so use good, fresh ones.

Unsalted butter
Butter adds richness and flavor to the onions as they cook, helping them brown evenly and giving the dip a luxurious, almost silky finish.

Olive oil
A little oil blended with the butter keeps the fat from burning during the long cooking time and helps the onions cook evenly.

Kosher salt
Salt draws moisture out of the onions so they soften and caramelize properly, and of course it makes every other ingredient taste like its best self.

Sugar
Just a pinch of sugar encourages more even browning and enhances the natural sweetness of the onions without making the dip taste sugary.

Garlic
Fresh minced garlic adds a gentle savory kick that keeps the dip from leaning too sweet and echoes the flavor of classic French onion soup.

Fresh thyme
Thyme brings a light, earthy aroma that pairs perfectly with caramelized onions and adds a subtle herbal depth.

Cream cheese
Softened cream cheese creates the body of the dip. It makes everything thick, creamy, and scoopable so it clings to chips and veggies.

Sour cream
Sour cream lightens the texture and adds tang, which balances the richness of the onions and cream cheese.

Mayonnaise
A small amount of mayo adds an extra creamy, almost whipped texture and a bit of savory depth.

Worcestershire sauce
This is my secret weapon. It brings in umami, a hint of sweetness, and a little acidity, rounding out all the flavors.

Lemon juice
A squeeze of fresh lemon brightens the dip so it doesn’t feel heavy, especially if you’re serving it with rich potato chips.

Fresh chives
Chopped chives stirred in at the end and sprinkled on top add color, a fresh onion bite, and that “finished” look.

Black pepper
Freshly cracked black pepper gives the dip a gentle heat and a savory backbone that keeps you going back for another bite.

How To Make the Caramelized Onion Dip

Step 1: Slice and prep the onions

Start by peeling your onions and slicing them pole to pole into thin half-moons. I aim for slices about 1/4-inch thick—thin enough to soften and caramelize nicely, but thick enough to hold their texture in the dip. Mince the garlic, strip the thyme leaves from the stems, and set everything near the stove so you’re ready to go.

Step 2: Slowly caramelize the onions

Set a large heavy skillet (cast iron or stainless works best) over medium-low heat. Add the butter and olive oil and let both melt together. Toss in the sliced onions along with the kosher salt and sugar, then stir to coat everything in the fat.

Cook the onions low and slow for about 25–35 minutes, stirring every few minutes. They’ll steam and soften first, then gradually turn golden, then deep amber. Adjust the heat if they start to scorch; you want steady browning, not burning. If the pan looks dry at any point, splash in a tablespoon of water and scrape up the browned bits.

Step 3: Add garlic and thyme

When the onions are a rich, caramel color and taste sweet and mellow, stir in the minced garlic and thyme leaves. Cook for another 1–2 minutes just until the garlic loses its raw bite and smells fragrant. Take the pan off the heat and let the mixture cool to room temperature—if it’s too hot, it will melt the dip base and make it runny.

Step 4: Make the creamy base

While the onions cool, add the softened cream cheese, sour cream, and mayonnaise to a medium mixing bowl. Beat them together with a hand mixer or a sturdy spatula until smooth and fluffy. Mix in the Worcestershire sauce, lemon juice, a pinch of salt, and a generous grind of black pepper. Taste and adjust the seasonings now so the base is balanced before you add the onions.

Step 5: Fold in the onions and chives

Scrape the cooled caramelized onions into the creamy base and gently fold everything together until the onions are evenly dispersed. Stir in most of the chopped chives, reserving a spoonful for garnish. Taste again and adjust with more salt, pepper, or lemon juice if needed. The flavors should be a little stronger than you think—they’ll mellow slightly as the dip chills.

Step 6: Chill and garnish

Transfer the dip to a serving bowl, smooth the top, and cover it. Chill for at least 1 hour (and up to 24 hours) to let the flavors meld and the texture firm up. Just before serving, top with the reserved chives and another twist of black pepper. Set out with chips, crackers, or veggies and get ready for the compliments.

Serving and Storing Caramelized Onion Dip

I like to serve this dip slightly cool—not fridge-cold and not warm. About 15–20 minutes before guests arrive, I pull it from the refrigerator so it can soften just enough for easy scooping. A big platter of kettle-cooked potato chips around the bowl is classic, but sturdy ridged chips are fantastic too.

Leftovers keep surprisingly well. Cover the bowl tightly or transfer the dip to an airtight container and store it in the refrigerator for up to 4 days. Give it a good stir before serving again. If it thickens too much, you can loosen it with a spoonful of sour cream. I don’t recommend freezing this dip; the texture turns grainy after thawing.

If you’re planning ahead for a party, you can make the dip completely up to a day in advance. In fact, the flavor gets even better as it rests overnight, which makes this an ideal make-ahead appetizer.

What to Serve With Caramelized Onion Dip

Kettle-cooked potato chips

The crunchy, salty texture of kettle chips is perfect against the creamy, silky dip. Look for thicker, sturdy chips so they don’t break when you scoop.

Ridged potato chips

Ridges grab onto more of the caramelized onions and creamy base, making every bite extra satisfying. These are always the first to disappear at my house.

Toasted baguette slices

Slice a baguette, brush the pieces with olive oil, and toast them until crisp. They make a slightly more upscale option that’s great for holiday parties and special occasions.

Fresh vegetable sticks

Carrot sticks, celery, bell pepper strips, cucumber rounds, and snap peas all pair beautifully with this dip. The freshness of the veggies balances the richness and makes the spread feel a little lighter.

Pita chips

Pita chips add a hearty crunch and a subtle toasty flavor. They hold up incredibly well to thick dips like this one.

Pretzel crisps

If you love salty snacks, pretzel crisps are a fun change of pace. The slight chew and salty crust play really nicely with the sweet onions.

Mini roasted potatoes

For a more substantial appetizer, serve the dip alongside tiny roasted or boiled baby potatoes. Guests can spoon the dip directly on top for a warm-and-cool contrast.

Want More Dip Ideas with Big Flavor?

If you love this Caramelized Onion Dip, I have a feeling these other recipes will earn a spot on your appetizer rotation too:

Spicy Ranch Taco Dip – Try my Spicy Ranch Taco Dip when you want bold Southwest flavors and a little kick for game day.
Rotel Chicken Salad Dip – This hearty Rotel Chicken Salad Dip is loaded with chicken, tomatoes, and creamy cheese for a scoopable crowd-pleaser.
Cheesy Rotel Ranch Queso – For a melty option, my Cheesy Rotel Ranch Queso brings together ranch seasoning, tomatoes, and plenty of gooey cheese.
Green Olive Dip – If you’re into briny, savory flavors, the Green Olive Dip is a tangy, salty contrast to this sweet onion version.

Save This Pin For Later

📌 Save this Caramelized Onion Dip to your favorite appetizer or party-food board so you can find it any time you need a reliable crowd-pleaser.

When you make it, come back and tell me how it went. Did you go extra heavy on the onions? Did you add bacon, cheese, or a splash of hot sauce? I love hearing how you put your own spin on these recipes.

If you’re craving even more inspiration, you can also follow along and discover new ideas on my ChefAlchemy Pinterest, where I share fresh dips, easy dinners, and fun party snacks all week long.