Erin’s Recipe Rundown

Texture: Creamy, tangy dip with crisp crinkle cut potato chips.
Taste: Rich cream cheese, savory caramelized onions, crunchy, salty potato chips.
Ease: Caramelized onions take a bit of patience, but the effort is SO worth it!
Top Tips: Make this recipe a day ahead to save time and give the dip time to intensify in flavor. Use a mandolin slicer for ultra-thin, uniform onion slices.
Would I make these again? No question! This is a must-have appetizer for game day parties!
xoxo erin

This post was originally published in February 2023. It was updated with new photos and instructions in January 2025.
If you’ve only had onion dip made from a store-bought mix, trust me when I say this homemade version is a million times better!
Cream cheese dip, savory caramelized onions, and crisp crinkle cut potato chips make a perfect flavor/texture combination. Fresh herbs and spices take this naturally gluten-free dip to the next level!
Featured Comment
From Olivia: This dip is amazing! I think it is the best onion dip I have ever made, thank you for sharing!
Table of Contents
- Erin’s Recipe Rundown
- Ingredients You’ll Need
- How to Make Caramelized Onion Dip
- Storage/Make-Ahead/Freezing Instructions
- Can this dip be made dairy-free?
- Is it better to caramelize onions with butter or olive oil?
- Do you need to add sugar to caramelize onions?
- Caramelized Onion Dip Tips
- More Favorite Appetizers
- Homemade Caramelized Onion Dip (Make-Ahead!) Recipe
Ingredients You’ll Need
Here are a few notes on some of the key ingredients to make this caramelized onion dip. Jump to the recipe card below for the exact measurements.

- Sour cream: I recommend using full-fat sour cream for this recipe. You can also use plain Greek yogurt instead.
- Mayonnaise: Use a high-quality, great tasting mayo for this dip! I like Hellmann’s best. You might like this article on does mayo have dairy.
- Cream cheese: Be sure to use softened cream cheese so that everything mixes together smoothly.
- Shallot: Shallots add more depth of flavor to this dip, since they’re a bit milder and sweeter than regular onions. I like to use a mandolin slicer to cut them.
- Onion: I like to use sweet yellow onions (like Vidalia) for this recipe. Large onions are ideal! Cut them on a mandolin slicer to get uniform, super-thin slices.
- Worcestershire sauce: Worcestershire sauce isn’t always gluten-free, so be sure to check the label! (Check out Is Worcestershire Sauce Gluten-Free? to learn more!)
How to Make Caramelized Onion Dip
Here’s an overview of how to make this caramelized onion dip. You can jump to the recipe for the full instructions!

- Caramelize the onions. Melt the butter in a skillet. Add sliced onions, shallot, and spices, then saute for 10 minutes. Reduce the heat and continue for another 20-25 minutes, until onions are deep golden brown and fragrant. Add the garlic and cook for another 1-2 minutes, then remove from the heat and cool to room temperature.

- Mix ingredients together. Combine softened cream cheese, sour cream, and mayonnaise in a medium bowl. (I usually use an electric mixer to do this, but you can also use a spoon if your cream cheese is very soft.)Add celery salt, Worcestershire sauce, lemon juice, and a little more salt and pepper (I add at least ¼ teaspoon each).

- Stir in onions, then chill. Cover the bowl and refrigerate dip for at least 1 hour. (I like to make this a day in advance as the flavors just get better!) Before serving, stir and sprinkle with chives. Serve with your favorite potato chips. Enjoy!
Storage/Make-Ahead/Freezing Instructions
To Store: Put leftover dip in an airtight container and store in the fridge for up to five days.
To Make Ahead: This is a GREAT make-ahead appetizer. The flavors get more intense and delicious over time! Feel free to make this dip a day in advance and store in the fridge until ready to enjoy.
To Freeze: This dip cannot be frozen, but you can make it a day in advance and chill in the fridge until serving.

Can this dip be made dairy-free?
Yes! For dairy-free caramelized onion dip, substitute with dairy-free butter, sour cream, cream cheese (I like Kite Hill brand), and mayonnaise. Trader Joe’s also has a great vegan caramelized onion dip.
Is it better to caramelize onions with butter or olive oil?
I prefer using butter to caramelize onions. It gives the onions a deeply caramelized flavor, since the butter browns slightly as it cooks.
Do you need to add sugar to caramelize onions?
You can add a touch of brown sugar to help caramelize onions, but it’s definitely not necessary! Sliced onions have natural sugars that slowly release and intensify as you cook them over low heat.
Caramelized Onion Dip Tips
- Make it ahead: I always make this caramelized onion dip at least one day in advance. It gives the flavors time to meld together and taste even better!
- For thinly sliced onions: I think a mandolin slicer is essential for this recipe! It helps get those ultra-thin onion slices that make this dip so delicious.
- Creative pairings: Potato chips are a classic pairing with this dip, but you could also use your chip of choice. Bagel chips, tortilla chips, pita chips, corn chips, or veggie sticks are all great options!

More Favorite Appetizers

Homemade Caramelized Onion Dip (Make-Ahead!)
Ingredients
FOR THE ONIONS:
- 4 tablespoons butter
- 3 large sweet onions such as Vidalia, cut into 1/8th inch slices
- 2 large shallots diced, about ½ cup
- ½ teaspoon salt
- ½ teaspoon pepper
- pinch of cayenne pepper
- 2 cloves garlic minced
FOR THE DIP:
- 8 ounces cream cheese at room temperature
- 1 cup sour cream
- 1 cup mayonnaise I use Hellmann’s
- 2 teaspoons celery salt
- 2 teaspoons Worcestershire sauce
- 1 teaspoon lemon juice
- More salt & pepper to taste
- 1 tablespoon minced fresh chives optional
Instructions
- In a large skillet over medium heat, melt the butter. Add the onions, shallot, salt, pepper and cayenne and saute for 10 minutes.
- Reduce the heat to medium-low and continue to cook slowly, for another 20-25 minutes. The onions should be deeply golden brown and fragrant.
- Add the garlic and cook for another 1-2 minutes. Remove from the heat and allow the onion mixture to cool to room temperature.
- In a medium bowl, add the softened cream cheese, sour cream and mayonnaise. Mix together until smooth and well combined. (I usually use an electric mixer to do this, but you can also use a spoon if your cream cheese is very soft.)
- Mix in the celery salt, Worcestershire sauce, lemon juice and a little more salt and pepper (I add at least ¼ teaspoon each). Stir in the cooled onion mixture.
- Cover the bowl and refrigerate for at least 1 hour. (I like to make this a day in advance as the flavors just get better!)
- Stir again and sprinkle with chives if desired before serving. Serve with your favorite potato chips. Enjoy!
Notes
- I always make this caramelized onion dip at least one day in advance. It gives the flavors time to meld together and taste even better!
- I think a mandolin slicer is essential for this recipe! It helps get those ultra-thin onion slices that make this dip so delicious.
- Potato chips are a classic pairing with this dip, but you could also use your chip of choice. Bagel chips, tortilla chips, pita chips, corn chips, or veggie sticks are all great options!
















Can this recipe be frozen?
Hi Lorraine, we don’t recommend freezing this dip due to its dairy content. Freezing will change the texture and consistency of the dip once thawed. We hope you enjoy the recipe!
This dip is amazing! I think it is the best onion dip I have ever made, thank you for sharing!
This dip is literally the best!!! I didnt expect to love it as much as I did. Next time I plan to add some spice to it for an extra kick!
My husband adores caramelized onions so I knew I had to make this once I found this recipe Well it did not disappoint and he LOVED it!
I’m so glad it turned out for you! 🙂