Creamy Caramelized Onion and Bacon Dip is rich and packed full of flavor, made with cream cheese, sweet onions, and crispy bacon. This dip can be served warm or chilled and pairs perfectly with salty kettle chips. It's creamy, savory, and crunchy flavors that will leave you wanting more!

It has been a bit of a cold dip party over here the last couple of months. We have been LOVING pimento cheese dip and spread, Kentucky Style Beer Cheese, and cucumber cream cheese dip with dill! But this dip....this one takes the cake!
Onion bacon dip has been our jam! Made with sour cream, crispy bacon bits, sweet caramelized onions, and a bunch of spices - bless it! Scoop it up with a salty potato chip and goodness, you will be in heaven! This dip can be enjoyed warm immediately after making the onions, or served chilled - both are great options and making this a versatile appetizer to bring to any party or have on hand for our friends and family. Perfect for game nights, tailgating, movie nights, or when you are just in the mood for a good dip.
Let me show you how I have found the best way to make this at home!
Welcome to my kitchen!
There aren't a ton of ingredients needed, but the brand and quality matter in my opinion for some things.
- Yellow Onions - yellow onions give the nice sweet flavor that this dip has. Thinly slice to help caramelize and cook evenly.
- Butter - to cook the onions in.
- Bacon - fry this bacon as you make the onions to utilize your time well. Drain and cool on a plate lined with paper towels. Finely chop it into bits after it is cooled. We love the Wright's bacon brand and what we use in our home.
- Sour Cream - we are team Daisy sour cream over here! That is the only brand of sour cream we use. Use full-fat sour cream for the best flavor.
- Fresh Chives - fresh chives compliment the sweet onion flavor.
- Spices - salt, garlic powder, and white pepper.
- Lemon - the juice helps brightens up the flavor and round out the recipe.
How to Make Caramelized Onions
The caramelized onions are really the star of the show and what gives this its rich and sweet depth of flavor. But...making these takes time and cannot be rushed! If you rush this cooking process then you will end up with burnt onions and that is NOT the vibe or taste we are going for.
Remember - LOW AND SLOW. That is the name of this game!
STEP ONE: Thinly slice the onions. Add to a large skillet and place on the stove over medium-low heat with the butter.
STEP TWO: Slowly saute for 30 minutes - stirring occasionally. Caramelizing onions takes a while - this is a process that should be done slowly over low heat so as not to burn. Keep an eye out on them as you stir. You will know when they are done when they have become soft, translucent, and a caramelized brown color, and smell very fragrant. Remove from the heat when finished.
Dip Assembly
STEP THREE: Fry the bacon in a large skillet over medium to medium-low heat. Remove when finished onto some paper towels to let cool. Chop the cooked bacon into small bits and add to a large bowl.
STEP FOUR: To a large bowl, add the onions and bacon bits. Add in the sour cream and the rest of the ingredients. Stir to incorporate everything evenly. Place in a serving bowl and enjoy immediately warm or chill in the fridge until needed and enjoy cold. Serve with your favorite kettle chips like Cape Cod Potato Chips.
Recipe
Creamy Caramelized Onion and Bacon Dip
- Total Time: 1 hour
- Yield: 10-12 1x
- Diet: Gluten Free
Description
Creamy Caramelized Onion and Bacon Dip is rich and packed full of flavor, made with cream cheese, sweet onions, and crispy bacon. This dip can be served warm or chilled and pairs perfectly with salty kettle chips. It's creamy, savory, and crunchy flavors that will leave you wanting more!
Ingredients
- 2 Tablespoon Butter
- 4 Small Sweet Onions (or 3 large) - thinly sliced
- ½ Pound Bacon
- 8 Ounces Sour Cream
- ½ Teaspoon Salt
- ½ Teaspoon White Pepper Pepper
- ½ Teaspoon Garlic Powder
- 2 Tablespoons Chives - finely chopped
- ½ Lemon - juiced
Instructions
Caramelized Onions
- Thinly slice the yellow onions. Add to a large skillet and place on the stove over medium-low heat with the butter.
- Slowly saute for 30 minutes - stirring occasionally. Caramelizing onions takes a while - this is a process that should be done slowly over low heat so as not to burn. Keep an eye out on them as you stir. You will know when they are done when they have become soft, translucent, caramelized brown in color, and smell very fragrant.
- Remove from the heat when finished.
Bacon Bits
- While the onions are cooking, prep the bacon.
- Fry the bacon in a large skillet over medium to medium-low heat. Remove when finished onto some paper towels to let cool.
- Chop the cooked bacon into small bits and add to a large bowl.
Dip Assembly
- To the large bowl the bacon is in, add the caramelized onions.
- Add in the sour cream and the rest of the ingredients. Stir to incorporate everything evenly.
- Spoon into a serving bowl and serve with kettle potato chips.
Notes
- This dip can be enjoyed immediately after assembly still slightly warm, at room temp, or chilled.
- This can be made 24 hours in advance.
- Keep leftovers stored airtight in the fridge for 2-3 days.
- Prep Time: 30 minutes
- Cook Time: 30 minutes
- Category: Appetizer
- Method: Cooking
- Cuisine: American
Nutrition
- Serving Size: 1 scoop
- Calories: 253
- Sugar: 2.8 g
- Sodium: 334.4 mg
- Fat: 20.8 g
- Carbohydrates: 9.7 g
- Fiber: 1 g
- Protein: 7.4 g
- Cholesterol: 45.4 mg
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