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Home Recipes By Type Appetizers

Smoky Caramelized Onion Dip

Caramelized Onion Dip is a smoky and deeply savory creamy dip featuring slowly caramelized onions folded into tangy sour cream and mayo, brightened with garlic powder and smoky paprika. This dip is a fabulous appetizer and perfect for game day, pool day, picnics, or backyard parties.
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By: Diana Published on May 15, 2025

This post may contain affiliate links. Please read my disclosure policy.

a ceramic bowl of creamy dip with potato chips on the side. Text overlay says "smoky caramelized onion dip"
a platter of potato chips with a large bowl of homemade caramelized onion dip on the left side.


Diana, author of Little Sunny Kitchen.

Skip the Packet – Make This Instead!

Chips and dip is such a classic snack option, and with my yummy caramelized onion dip recipe, plain old potato chips will be the main event at your next game day, pool party, or picnic!

I like to serve this creamy, savory, and tangy dip with plenty of salty chips, but it’s also really good with veggie sticks. As part of a fun charcuterie board, add a cup of this dip next to some pita chips or buttery crackers.

I played around with the flavors in this recipe until I was completely satisfied with the taste and the texture. Inside this recipe you’ll find tangy sour cream and mayo, a bright bit of garlic powder and smoky paprika along with sweet, slow cooked caramelized onions.

Looking for more easy cold dip recipes? Try my Italian Hoagie Dip, Million Dollar Dip, or Cold Spinach Artichoke Dip too!

Key Ingredients

Here’s what you need to make this homemade French onion dip with a twist:

Complete list of ingredients and amounts can be found in the recipe card below.

  • Butter and Olive Oil: To cook the onions. Butter adds a rich flavor, while olive oil allows for cooking at a slightly higher heat, keeping the butter from burning during the long process of caramelizing onions.
  • Onions: I like the flavor that comes from yellow onions, and for this recipe you’ll need about a pound of them, which should be 4 or 5 onions. Dice the onions into small pieces so that they will cook evenly and be easy to incorporate into the dip.
  • Seasonings: To enhance and play off of the sweet flavor of the caramelized onions, we will add salt, black pepper, smoked paprika, garlic powder, Dijon mustard, and Worcestershire sauce.
  • Sour Cream and Mayonnaise: A mix of both of these creamy ingredients gives the dip the perfect texture and mouth feel. Be sure to use full-fat versions of both the sour cream and mayo for the best flavor.

How To Make Onion Dip with Caramelized Onions

Once you’ve properly caramelized the onions, this dip recipe is really quite simple: Just mix all of the ingredients together in a bowl! All of the details are below in the recipe card.

What I’d really like to talk about is how to cook caramelized onions.

Caramelizing onions is a process that takes a little bit of time – around 30 minutes to go from raw onions to deep, brown, deliciously sweet ones – and is worth every second!

closeup of a pile of deeply caramelized diced onions on a white plate.

Here are my best tips for caramelizing onions:

  • Choose the right pan. Nonstick pans are great for pancakes and omelets, but not the best choice for caramelizing onions. Instead, choose a stainless steel or cast iron pan for this job. As the onions cook, scrape up the brown bits that form on the pan to make them even more delicious.
  • Cook low and slow. Take your time and cook the onions over medium-low heat for around half an hour. The slower you go, the better the onions will caramelize. The onions are done when they are a deep brown color and have a sweet flavor.
  • You might need to add water. The salt that we add to the onions will help to draw out some of their moisture, but if the onions seem too dry or they start sticking to your pan, add a splash of water and continue on.
  • For extra depth of flavor, deglaze the pan with 2 tablespoons of dry white wine near the end of caramelization.
a striped ceramic bowl of creamy caramelized onion chip dip, garnished with chopped chives.

Storing Tips

Keep this dip chilled in the fridge in an airtight container until you’re ready to serve it, or for up to 3 days

Onion dip does not freeze well.

Did you make this? Be sure to leave a review below and tag me on Facebook, Instagram, or Pinterest!

Recipe
a platter of potato chips with a large bowl of homemade caramelized onion dip on the left side.
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Smoky Caramelized Onion Dip

Prep Time: 10 minutes mins
Cook Time: 30 minutes mins
Chill Time: 30 minutes mins
Total Time: 1 hour hr 10 minutes mins
Author: Diana
Print Rate Recipe
Caramelized Onion Dip is a smoky and deeply savory creamy dip featuring slowly caramelized onions folded into tangy sour cream and mayo, brightened with garlic powder and smoky paprika. This dip is a fabulous appetizer and perfect for game day, pool day, picnics, or backyard parties.
8 Servings
Caramelized Onion Dip is a smoky and deeply savory creamy dip featuring slowly caramelized onions folded into tangy sour cream and mayo, brightened with garlic powder and smoky paprika. This dip is a fabulous appetizer and perfect for game day, pool day, picnics, or backyard parties.

Equipment

  • 12-inch stainless steel skillet
  • Chef’s knife and cutting board
  • wooden spoon or spatula
  • Measuring cups and spoons
  • medium mixing bowl

Ingredients 

  • 2 tablespoons (30 ml) extra-virgin olive oil
  • 2 tablespoons (28 g) unsalted butter
  • 1 pound (450 g) yellow onions diced, about 4-5 onions
  • ½ teaspoon fine salt divided
  • ½ teaspoon freshly ground black pepper
  • 1 teaspoon smoked paprika
  • ½ teaspoon garlic powder
  • 1 cup (240 ml) full-fat sour cream
  • ¼ cup (63 g) mayonnaise
  • 2 teaspoons (10 g) Dijon mustard
  • 1 teaspoon Worcestershire sauce

For serving

  • Potato Chips about 8 ounces
  • 2 tablespoons sliced fresh chives or chopped parsley for garnish

Instructions 

  • Warm the oil and unsalted butter together in a large heavy skillet over medium heat until the butter melts.
    butter melting in a stainless steel skillet.
  • Add the diced onions and ¼ teaspoon salt, stirring to coat.
    diced onions cooking in a skillet, stirred with a red spatula.
  • Reduce heat to medium-low and cook, stirring every few minutes, until the onions turn deep golden brown and sweet, about 30 minutes. Add a splash of water if they begin sticking.
    caramelized diced onions in a stainless steel frying pan.
  • Remove the skillet from heat and let the onions cool for 10 minutes. Transfer to a bowl.
  • Add black pepper, smoked paprika, garlic powder, the remaining ¼ teaspoon salt, sour cream, mayonnaise, Dijon mustard, and Worcestershire sauce and mix until smooth.
    sour cream, mayo, and seasonings added to a bowl of caramelized onions to make a dip.
  • Cover and chill at least 30 minutes to let flavors meld.
    caramelized onion dip in a white mixing bowl, stirred with a black spatula.
  • Transfer the dip to a serving bowl, sprinkle the chopped fresh chives over the top, and surround with potato chips.

Notes:

  • For extra depth, deglaze the pan with 2 tablespoons of dry white wine near the end of caramelization.
  • This dip is best served cold, and should be chilled for at least 30 minutes or an hour after you initially make it. Chill overnight to really let the flavors develop.
  • To make this lighter, use ¾ cup sour cream and ½ cup Greek yogurt instead of the sour cream and yogurt listed in the recipe.
  • Serve in one bowl, or in small lidded cups if taking to a picnic or the pool.
  • To Store: Keep in an airtight container in the refrigerator for up to 3 days. 
  • Nutrition facts are for 2 tbsp (30g) of dip, without potato chips.
  • Inspired by Hailee Catalano’s shallot dip (from By Heart cookbook), with my own tweaks to measurements and add-ins.

Nutrition Information

Serving: 2tablespoons, Calories: 186kcal, Carbohydrates: 7g, Protein: 2g, Fat: 17g, Saturated Fat: 6g, Polyunsaturated Fat: 4g, Monounsaturated Fat: 6g, Trans Fat: 0.1g, Cholesterol: 27mg, Sodium: 225mg, Potassium: 138mg, Fiber: 1g, Sugar: 4g, Vitamin A: 398IU, Vitamin C: 5mg, Calcium: 46mg, Iron: 0.3mg

This website provides approximate nutrition information for convenience and as a courtesy only. Nutrition data is gathered primarily from the USDA Food Composition Database, whenever available, or otherwise other online calculators.

© Little Sunny Kitchen

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Serving Ideas

  • For a party, it’s fun to serve this dip in a big bowl with a side of chips and let everyone dig in!
  • If your party is outdoors, take care to ensure that the dip stays cold to avoid any food safety issues. I like to keep it in a bowl with ice, or put the dip out for only short periods of time so that it doesn’t warm up too much in the sun.
  • Pack the dip in individual lidded cups and bring them along on a picnic or to the beach, kept in a cooler. This way everyone can grab their own portion when it’s time to eat. This method works well for pool party jello shots too!
  • Other dippers that work well with caramelized onion dip include cut carrots, celery sticks, torn pitas, pretzels, tortilla chips, or slices of baguette.
  • Think outside of the box too! Try this savory onion dip as a spread for burgers or sandwiches!
a hand dipping a chip into a bowl of caramelized onion dip. The dip is on a platter with potato chips on the side.

More Dip Recipes to Try!

Slow Cooker Queso

Pimento Cheese Recipe

Easy Veggie Dip Recipe

Cheeseburger Dip

All Appetizers →

Recipe Tips

  • Chilling is important! This dip is best served cold, and should be chilled for at least 30 minutes or an hour after you initially make it. Chill overnight to really let the flavors develop.
  • To make this lighter, use ¾ cup sour cream and ½ cup Greek yogurt instead of the sour cream and yogurt listed in the recipe.

Caramelized Onion Dip FAQs

Can I make this dip ahead of time?

Once made, this dip will stay fresh for up to 3 days if stored in an airtight container in the fridge. Feel free to make it a day or two ahead of time to make things easier.

Why is it called French Onion Dip?

French onion dip is an American culinary creation, often made with dried onion flakes or packaged French onion soup mix. The name of the dip comes from the flavor of caramelized onions, which is similar to the flavor of French onion soup.

Can I make caramelized onion dip with yogurt?

Yes! Use plain Greek yogurt in place of the mayonnaise and some of the sour cream called for in this recipe to make it a bit lighter in calories.

Can You Freeze onion dip?

No, onion dip does not freeze well. The sour cream and mayo mixture will separate and change texture as it thaws and will not be tasty or pretty! Instead, store your homemade onion dip in the fridge.

Be patient with the caramelized onions, and you’ll have the most amazing homemade onion dip ready for sharing! Save this recipe by Pinning it or sharing for more people to enjoy too.

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  1. Gail says

    Posted on 5/15/25 at 21:55

    Your recipes are so good and I appreciate you sharing.
    Thank you so much,I love to cook.

    Reply
    • Little Sunny Kitchen says

      Posted on 5/16/25 at 00:50

      Thank you so much Gail! I’m happy to share what I know and love!

      Reply

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Diana, author of Little Sunny Kitchen.
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Welcome to Little Sunny Kitchen! I'm Diana and I’m here to teach you how to make easy meals that are quick, family-friendly, and delicious!

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