Homemade Onion Dip

Thick and creamy homemade onion dip is made with sweet caramelized onions. This incredible dip will be the talk of the party!

It has just the right amount of tang, and a whole lotta flavor. If you take this to a gathering you are sure to bring home a clean bowl!!! Keep that dippable delicious-ness going with BEST 7 Layer Dip, Jalapeno Popper Dip, and Homemade Queso Dip

Potato chip being dipped into onion dip

Onion Dip from Scratch!

This is not your typical onion dip! I grew up loving the onion dip you make with those flimsy packets and a tub of sour cream. Something about its tanginess paired with salty ruffle chips was irresistible! Today I’m sharing an amazing homemade version. It’s slightly sweet, tangy, and full of flavor. And just like the stuff in the tub, it goes great with potato chips. 

This homemade onion dip requires a little more time and patience than most dips, but it’s well worth the effort! Instead of using dehydrated onions, we’re going to caramelize 3 yellow or sweet onions. 

What is the difference between French onion dip and onion dip? A normal onion dip doesn’t typically include fresh onions that have been caramelized. French onion dip uses caramelized onions as opposed to dried onion powder and sour cream. 

Caramelized onions for homemade onion dip recipe

How to Make Onion Dip

CARMELIZE: Cut the onions into thin slices, then toss them into a skillet along with butter, salt and sugar. The sugar and salt will help them sweat and become even more caramelized and delicious.

(Tip: This process generally takes anywhere from 40 minutes to an hour depending on your stove and pan. Not cooking them long enough will result in stringy, tough onions that still taste bitter. Cooking them with high heat can burn them quickly. It’s a low and slow kind of deal. I promise it’s worth it!)

MIX: Once the onions are caramelized you can mix them with everything else. I like to use a hand-held mixer for this as it tends to make the dip much smoother.

REST: Then comes the difficult part: let the dip rest in the refrigerator for at least 2 hours. I know, it’s not easy but it’s necessary. You want the dip to absorb all of the flavor from the onions and for everything else to meld together. I’d suggest making this in the morning or even the night before you plan on serving it. It will taste 10x better!

SERVE: Grab a BIG bag of chips and get ready to dip! This homemade onion dip will be the hit of the party. It’s loaded with flavor and tastes so much better than any package mix. Enjoy!

Ingredient Tips:

  • Best onions to use? You should use a sweet onion and preferably not a red onion. Some recommend using vidalia onions.
  • Why saute onions with sugar? When you add sugar to the onions, you add to the overall sweetness of the dish. The whole point of caramelizing the onions is to bring out the sweetness of them, which is only emphasized by the added sugar.
  • Can you use soy sauce instead of worchestire sauce? If you don’t have worchestire sauce, you can use soy sauce instead. They aren’t the same taste profile, but give that salty taste that has a good vinegary punch to it. 
  • Use mayo instead of cream cheese? The cream cheese is used to thicken/stabilize the dip. If you use mayo instead of cream cheese it won’t be as thick and creamy. You also run the risk of tasting too much mayo in your dip.
  • Greek yogurt? You can also substitute the cream cheese for greek yogurt. This is a healthier option that is still thick and creamy. Just make sure that you don’t use flavored yogurt. You could also use non-fat yogurt to make it a little healthier.

Ingredients for onion dip recipe in a glass bowl

Serving & Storage Tips

How long can this sit out? You shouldn’t let it sit out for more than 2 hours because the sour cream will go bad. When entertaining, you should keep this refrigerated beforehand and put it back in the fridge as soon as you can to keep the dip fresh.

Serve it with… We like to serve this caramelized onion dip with both fresh veggies and salty chips. Here are some suggestions.


  • Celery sticks
  • Mushrooms
  • Broccoli
  • Cauliflower


  • Pretzel rods
  • Crackers
  • Potato chips 
  • Mini toasts

How to thin out the dip? If the dip is too thick you can add a dash of mayo or milk. Mix well to incorporate the extra liquid, hopefully this makes it thinner and keeps a good taste profile!

Make ahead: You can make this the day of the event or the day before as long as you keep it refrigerated. In fact, I actually suggest making this in the morning or even the night before you plan on serving it. It will taste 10x better!

Store: You should keep this in the fridge for up to a week in a tightly covered container. This will keep basically as long as the sour cream is good. Do not try to freeze this because the sour cream will get all grainy and separate after it freezes. 

Close up of homemade onion dip in a glass bowl

For more dip recipes, check out: 

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Homemade Onion Dip | lifemadesimplebakes.com

Homemade Onion Dip Recipe

Thick and creamy homemade onion dip made with sweet caramelized onions. This incredible dip will be the talk of the party!
4.86 from 21 votes
Pin Rate
Course: Appetizer
Cuisine: American
Prep Time: 15 minutes
Cook Time: 40 minutes
Chill Time: 2 hours
Total Time: 2 hours 55 minutes
Servings: 8
Calories: 157kcal
Author: Andrea
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  • 3 tbsp unsalted butter
  • 3 sweet or yellow onions - thinly sliced*
  • 2 tsp kosher sea salt
  • 1 tsp granulated sugar
  • 1 1/4 cup sour cream
  • 8 oz original cream cheese - softened
  • 1 1/2 tbsp freshly chopped parsley
  • 1 1/2 tsp worcestershire sauce
  • 1/4 tsp garlic powder
  • 1/4 tsp ground black pepper
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  • In a large skillet set over medium heat, add butter. Once the butter has melted, add the onions and sprinkle with salt and sugar. Saute onions for 40-50 minutes or until they become golden or amber in color. Take care to stir every 5-10 minutes to prevent burning. Remove from the heat and set aside,
  • In a medium mixing bowl combine the sour cream, cream cheese, parsley, worcestershire sauce, garlic powder, and pepper. Using a hand-held mixer beat until smooth and creamy.
  • Break down the onions into smaller pieces using a spatula or transfer to a cutting board and chop. Transfer to the bowl and mix until combined.
  • Cover and refrigerate for at least 2 hours before serving.


*The thinner the better!


Serving: 6serving | Calories: 157kcal | Carbohydrates: 8g | Protein: 6g | Fat: 12g | Saturated Fat: 7g | Cholesterol: 34mg | Sodium: 823mg | Potassium: 199mg | Fiber: 1g | Sugar: 5g | Vitamin A: 432IU | Vitamin C: 4mg | Calcium: 150mg | Iron: 1mg


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Hi I'm Andrea!

Hotelier turned Food Blogger to help make your life simple, one recipe at a time.

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  1. 5 stars
    Onion dip is our favorite chip dip! Whenever we bbq or have a picnic & chips are involved, we have to make this. So much better than the store bought stuff!

  2. 5 stars
    Homemade Onion Dip is SO MUCH better than store bought. It just taste more fresh and creamy! Its an absolute favorite of mine!