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The Best Creamy Homemade Caramelized Onion Dip (Better Than Store-Bought)

A white bowl filled with creamy caramelized onion dip, topped generously with dark, rich caramelized onions.

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Make this rich, creamy caramelized onion dip from scratch. Slow cooking the onions creates a deep, sweet flavor that surpasses any store-bought version. This is the perfect easy party appetizer for game day or any gathering.

Ingredients

Scale
  • 3 large yellow onions, thinly sliced
  • 2 tablespoons unsalted butter
  • 1 tablespoon olive oil
  • 1 teaspoon salt, divided
  • 1/2 teaspoon black pepper
  • 1/4 teaspoon granulated sugar
  • 8 ounces cream cheese, softened
  • 1 cup sour cream
  • 1 tablespoon Worcestershire sauce
  • 1 teaspoon onion powder
  • 1/2 teaspoon garlic powder

Instructions

  1. Combine the sliced onions, butter, and olive oil in a large, heavy-bottomed skillet or Dutch oven. Cook over medium-low heat, stirring occasionally for 5 minutes until the onions soften.
  2. Reduce the heat to low. Add the sugar and 1/2 teaspoon of salt. Cook the onions slowly, stirring every 5 to 10 minutes, for 45 to 60 minutes until they are deep brown and sweet. Do not rush this step; slow caramelization builds the flavor.
  3. Remove the onions from the heat and let them cool slightly. Drain off any excess fat if necessary.
  4. In a medium bowl, combine the softened cream cheese, sour cream, Worcestershire sauce, onion powder, and garlic powder. Mix until smooth.
  5. Fold the cooled caramelized onions into the cream cheese mixture. Stir in the remaining 1/2 teaspoon of salt and the pepper.
  6. Taste the dip and adjust seasonings if needed. For the best flavor, cover the dip and refrigerate for at least 2 hours, or preferably overnight, to allow the flavors to meld.
  7. Serve your homemade onion dip cold with potato chips, crackers, or fresh vegetables.

Notes

  • You can make the caramelized onions up to three days ahead of time and store them in the refrigerator.
  • For an extra savory depth, add 1 teaspoon of dried thyme with the seasonings.
  • If you prefer a warm onion dip recipe, you can bake this dip at 350°F (175°C) for 15 minutes until heated through before serving.

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