Caramelized Onion and Bacon Dip
Caramelized Onion and Bacon Dip is a rich, savory blend of sweet onions and crispy bacon mixed into a creamy, tangy base. This crowd-pleasing appetizer is perfect for dipping with chips, crackers, or veggies!

Caramelized Onion Dip
I’m pretty confident that most of you have tried the French onion dip that you can find in the refrigerator section of most grocery stores. This short-cut style dip combines a dry French onion soup mix with a sour cream (or Greek yogurt) mayo combo.
This homemade version is a step up store-bought, and there is nothing like slow-cooked caramelized onions in a tangy base. Trust me. You’ll be making this on repeat for summer gatherings and winter holidays!
Why This Recipe Works:
- SIMPLE INGREDIENTS – This caramelized onion and bacon dip recipe uses simple ingredients that are readily available at most grocery stores.
- PACKED WITH FLAVOR – Oh, the flavor of those caramelized onions and crispy bacon bits are out of this world!
- GREAT FOR PARTIES – This caramelized onion dip is a real crowd-pleaser and perfect for holidays, summer backyard barbecues, game days, and just because.

What You’ll Need:
- Bacon
- Butter
- Yellow Onions
- Salt and Pepper
- Water as needed
- Plain Greek Yogurt
- Mayonnaise
- Garlic Powder
- Worcestershire Sauce – for umami flavor
- Lemon Juice

How to make Caramelized Onion and Bacon Dip:
Step 1
Prep onions. Peel onions, slice in half, and then slice the onions into thin strips. Slice again until the thin strips are about one inch in length. Set aside.

Step 2
Sauté Bacon. In a medium stock pot over medium-high heat, add diced bacon. Cook until crispy, stirring often. Remove bacon and leave the grease. (If you remove grease, you’ll want to add additional butter.) I used half of the bacon grease and two tablespoons of butter.
Step 3
Cook onions. Reduce heat to medium and add the butter to the pot. Let melt. Then add the sliced onions, salt, and pepper – and cook, stirring frequently to avoid burning. You may need to add splashes of water to moisten the onions as they cook. Continue cooking until onions get nice and golden brown, about 30-40 minutes.
Remove pot from heat and let onions cool to almost room temperature.


Step 4
Mix remaining ingredients. In a medium bowl, combine the plain Greek yogurt, mayonnaise, crispy bacon, garlic powder, and Worcestershire sauce. Use a spoon to mix well.
Step 5
Add onions. Then add the onions to the bowl and stir to combine. Add additional salt and pepper, and a squeeze of lemon juice – and mix again.
NOTE: If dip is super thick, add an extra squeeze of lemon juice and some cold water to thin as needed.
Step 6
Add to serving bowl. Add the dip to a serving bowl, cover with cling wrap, and store in the refrigerator until ready to serve. The flavor gets even better after a couple of hours.


Step 7
Serve. Serve caramelized onion dip with chips, pretzels, on burgers, steak, or chicken, or eat it with a spoon!
Store dip in an airtight container in your refrigerator for 1-2 days.
Recipe FAQs:
Cook sliced onions over low heat with butter or oil, stirring occasionally, for about 30–40 minutes until they turn golden brown and sweet.
The bacon should be crispy so it adds a nice texture contrast to the creamy dip. Slice the bacon into small pieces and sauté it until deeply browned.
Yes, caramelized onion dip actually tastes better after a couple hours in the fridge, allowing the flavors to meld together.
Yes, you can add 1/2-1 cup of dry white wine while making the caramelized onions. Cook until the liquid absorbs.


Other Delicious Dip Recipes:
Kitchen Tools Used: (affiliate links)
xoxo ~Sue

Caramelized Onion and Bacon Dip Recipe
Ingredients
- 6 slices thick-cut bacon – diced
- 2 Tablespoons unsalted butter
- 3 medium yellow onions
- kosher salt and freshly ground black pepper – to taste
- 1 cup plain Greek yogurt
- 1 cup mayonnaise with olive oil
- 1/2 teaspoon garlic powder
- 1 teaspoon Worcestershire sauce
- squeeze of fresh lemon juice
- water as needed
Instructions
- Prep onions. Peel onions, slice in half, and then slice the onions into thin strips. Slice again until the thin strips are about one inch in length. Set aside.3 medium yellow onions
- Sauté Bacon. In a medium stock pot over medium-high heat, add diced bacon. Cook until crispy, stirring often. Remove bacon and leave the grease. (If you remove grease, you’ll want to add additional butter.) I used half of the bacon grease and two tablespoons of butter.6 slices thick-cut bacon
- Cook onions. Reduce heat to medium and add the butter to the pot. Let melt. Then add the sliced onions, salt, and pepper – and cook, stirring frequently to avoid burning. You may need to add splashes of water to moisten the onions as they cook. Continue cooking until onions get nice and golden brown, about 30-40 minutes.Remove pot from heat and let onions cool to almost room temperature.2 Tablespoons unsalted butter, kosher salt and freshly ground black pepper
- Mix remaining ingredients. In a medium bowl, combine the plain Greek yogurt, mayonnaise, crispy bacon, garlic powder, and Worcestershire sauce. Use a spoon to mix well.1 cup plain Greek yogurt, 1 cup mayonnaise with olive oil, 1/2 teaspoon garlic powder, 1 teaspoon Worcestershire sauce
- Add onions. Then add the onions to the bowl and stir to combine. Add additional salt and pepper, and a squeeze of lemon juice – and mix again.NOTE: If dip is super thick, add an extra squeeze of lemon juice and some cold water to thin as needed.squeeze of fresh lemon juice, water as needed
- Add to serving bowl. Add the dip to a serving bowl, cover with cling wrap, and store in the refrigerator until ready to serve. The flavor gets even better after a couple of hours.
- Serve. Serve caramelized onion dip with chips, pretzels, on burgers, steak, or chicken, or eat it with a spoon!
Notes
- You can make caramelized onion dip ahead of time as it actually tastes better after a couple hours in the fridge, allowing the flavors to meld together.
- You can add 1/2-1 cup of dry white wine while making the caramelized onions. Cook until the liquid absorbs.
- Store dip in an airtight container in your refrigerator for 1-2 days.