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

A close-up of creamy caramelized onion dip topped with fresh chives in a white serving bowl.

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Make this rich, creamy caramelized onion dip from scratch. Slow cooking the onions creates a deep, sweet flavor that outshines any store-bought version, making it the perfect party appetizer.

Ingredients

Scale
  • 3 large yellow onions, thinly sliced
  • 2 tablespoons unsalted butter
  • 1 tablespoon olive oil
  • 1 teaspoon salt
  • 1/2 teaspoon black pepper
  • 1 teaspoon brown sugar (optional, for deeper color)
  • 8 ounces cream cheese, softened
  • 1 cup sour cream
  • 1/2 cup mayonnaise
  • 1 tablespoon Worcestershire sauce
  • 1 teaspoon garlic powder
  • 1/4 cup chopped fresh chives, for garnish

Instructions

  1. Combine the sliced onions, butter, and olive oil in a large, heavy-bottomed skillet over medium-low heat.
  2. Cook the onions slowly, stirring every 5 to 10 minutes. This slow cooking process is key for deep flavor. Continue cooking for 40 to 50 minutes until the onions are deeply browned and sweet.
  3. Stir in the salt, pepper, and brown sugar (if using) during the last 5 minutes of cooking. Remove the onions from the heat and let them cool slightly.
  4. In a medium bowl, combine the softened cream cheese, sour cream, and mayonnaise until smooth.
  5. Stir in the Worcestershire sauce and garlic powder. Mix well to combine all seasonings.
  6. Fold the cooled caramelized onions into the cream cheese mixture until evenly distributed.
  7. Cover the dip and refrigerate for at least 2 hours, or preferably overnight, to allow the flavors to fully meld. This is a great make ahead appetizer.
  8. Before serving, taste and adjust salt and pepper if needed. Garnish with fresh chives. Serve this irresistible dip with your favorite chips and crackers.

Notes

  • For an easy baked onion dip variation, mix all ingredients, transfer to an oven-safe dish, top with a sprinkle of Parmesan cheese, and bake at 375°F (190°C) for 15 minutes until bubbly.
  • If you are short on time, you can cook the onions slightly faster over medium heat, but you will sacrifice some of the deep sweetness that makes this recipe better than store-bought.
  • This dip is excellent served cold, but it also works well served warm as a party appetizer.

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