Creamy caramelized onion and crispy bacon dip served in a bowl, perfect for parties and gatherings.

Caramelized Onion and Bacon Dip

This Caramelized Onion and Bacon Dip is a total crowd-pleaser with its rich, smoky bacon bits mixed perfectly with sweet, slow-cooked onions. It’s creamy, flavorful, and has just the right…

By Brad



Reading time: 5 min

Tip: save now, read later.

Serves 4–6

This Caramelized Onion and Bacon Dip is a total crowd-pleaser with its rich, smoky bacon bits mixed perfectly with sweet, slow-cooked onions. It’s creamy, flavorful, and has just the right balance between savory and a touch of sweetness. The texture is smooth with little bites of crispy bacon that make every scoop so satisfying.

I love making this dip when friends are coming over because it always disappears fast and everyone ends up asking for the recipe. What’s great is that the caramelized onions take a bit of time to get just right, but it’s so worth it for the depth of flavor they bring. I usually make a big batch and sneak a spoonful or two while cooking because I can’t resist!

My favorite way to serve it is with a mix of crunchy crackers and fresh veggie sticks like carrots and celery. It feels like the perfect pairing for a cozy afternoon or a relaxed evening with people you care about. Whenever I bring this dip along to gatherings, it instantly gets people chatting and sharing stories, which I think is the best kind of magic food can bring.

Key Ingredients & Substitutions

Onions: Yellow onions work best for caramelizing because of their natural sweetness. If you want a more intense flavor, try using a mix of sweet onions and shallots. Avoid white onions as they lack sweetness.

Bacon: Bacon adds smoky, crispy bites. Use thick-cut bacon if you want more chew or turkey bacon for a leaner option. For a vegetarian twist, use smoked tempeh or mushrooms.

Cream cheese & sour cream: These keep the dip creamy and tangy. You can swap sour cream for Greek yogurt for a healthier version. Vegan cream cheese and plant-based yogurt work well for dairy-free diets.

Cheddar cheese: Sharp cheddar gives a nice tang and melts smoothly. If unavailable, try gouda or Monterey Jack, which melt beautifully too.

Thyme and sugar: Fresh thyme adds a subtle herb flavor that brightens the dip. Sugar helps onions caramelize faster but don’t skip the low and slow cooking.

How Do You Perfectly Caramelize Onions Without Burning Them?

Caramelizing onions slowly releases their sweetness but takes patience. Here’s how to nail it:

  • Heat butter and oil over medium-low heat to avoid burning.
  • Add sliced onions, sprinkle with a pinch of salt and sugar to help draw out moisture and speed caramelization.
  • Stir every few minutes—not constantly—to let onions soften and brown evenly.
  • If onions stick or dry out, add a splash of water to loosen them up.
  • Cook for about 30-40 minutes until deeply golden and soft.

Taking your time here builds rich flavor that sets this dip apart. Trust me, the slow burn is well worth it.

Equipment You’ll Need

  • Large skillet – perfect for slowly caramelizing onions without burning them.
  • Mixing bowl – helps you easily combine cream cheese, sour cream, and other ingredients smoothly.
  • Baking dish (8-inch or similar) – holds the dip while it bakes and gets bubbly.
  • Wooden spoon or spatula – great for stirring onions and folding dip ingredients without scratching pans.
  • Knife and cutting board – for chopping onions, bacon, and garnishes cleanly.

Flavor Variations & Add-Ins

  • Swap bacon for pancetta or smoked sausage to bring a different kind of smoky richness.
  • Stir in chopped fresh chives or green onions for a mild onion flavor and fresh color.
  • Add a pinch of smoked paprika or cayenne for a subtle smoky heat that livens up the dip.
  • Mix in some grated Parmesan cheese with the cheddar to boost savory depth and meltiness.

Best Caramelized Onion Bacon Dip

How to Make Caramelized Onion and Bacon Dip?

Ingredients You’ll Need:

For the Dip:

  • 4 large onions, thinly sliced
  • 6 slices of bacon
  • 8 oz cream cheese, softened
  • 1 cup sour cream
  • 1 cup shredded sharp cheddar cheese
  • ½ cup mayonnaise
  • 2 tablespoons butter
  • 1 tablespoon olive oil
  • 2 teaspoons sugar
  • 1 teaspoon fresh thyme leaves (plus extra for garnish)
  • Salt and pepper to taste
  • Baguette slices or crackers, for serving

Time You’ll Need:

This recipe takes about 15 minutes prep time, 30-40 minutes to caramelize the onions, and about 25 minutes baking time. So set aside roughly 1 hour from start to finish.

Step-by-Step Instructions:

1. Caramelize the Onions:

Heat olive oil and butter in a large skillet over medium-low heat. Add the sliced onions, then sprinkle with sugar and a pinch of salt. Cook slowly, stirring now and then, until the onions turn a deep golden brown and are nicely caramelized—this usually takes 30 to 40 minutes. Stir in the fresh thyme leaves, then set the pan aside to cool.

2. Cook and Chop the Bacon:

While the onions cook, fry your bacon in a separate pan until crisp. Drain the bacon on paper towels, then chop it into small pieces. Reserve some of these pieces for topping later.

3. Make the Creamy Dip Base:

In a medium bowl, mix together the softened cream cheese, sour cream, mayonnaise, and shredded cheddar cheese. Blend until the mixture is smooth and creamy.

4. Combine Everything:

Fold the cooled caramelized onions and most of the chopped bacon into the creamy mixture. Save some bacon bits for the topping. Season with salt and pepper to taste.

5. Bake the Dip:

Preheat your oven to 375°F (190°C). Pour the dip mixture into a baking dish and spread it out evenly. Sprinkle the reserved bacon and a little more cheese on top if you like. Bake for about 20 to 25 minutes until the dip is bubbly and the top is lightly browned.

6. Serve and Enjoy:

Serve the dip warm, surrounded by toasted baguette slices or your favorite crackers. Garnish with fresh thyme leaves for a pretty, fresh touch.

Can I Use Frozen Onions to Make This Dip?

It’s best to use fresh onions for caramelizing because frozen ones usually release too much water and won’t caramelize properly. If you only have frozen, thaw them fully and pat dry to remove excess moisture before cooking.

Can I Prepare This Dip Ahead of Time?

Yes! You can caramelize the onions and cook the bacon a day ahead, then mix everything and bake right before serving. Store prepared components separately in the fridge to keep them fresh.

How Should I Store Leftovers?

Keep leftover dip in an airtight container in the fridge for up to 3 days. Reheat gently in the oven or microwave until warmed through, stirring occasionally for even heat.

What Are Good Alternatives for Serving?

Besides toasted baguette slices or crackers, you can serve this dip with fresh veggie sticks like celery, carrots, or bell peppers for a lighter option.

About the author
Brad

Leave a Comment