Caramelized Onion Dip (VIDEO)
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My delicious Caramelized Onion Dip is sweet and savory, so creamy, and DELICIOUS – it’s the perfect dip to indulge in with thick cut potato chips or raw vegetables!

Watch the Caramelized Onion Dip Recipe Video!

A Note from CJ
I love this Caramelized Onion Dip!
This dip is the perfect mix of sweet, savory, creamy, and just plain delicious! Caramelizing onions seem like a lot of work but my trick of using both sugar and salt cuts down the time significantly!
Dips are my go-to for entertaining because all you have to do is mix ingredients and cook/bake – like my classic Buffalo Chicken Dip, Hot Baked Crab Dip, Spinach Artichoke Dip, Houston’s Copycat Spinach Artichoke Dip, Korean Cheese Corn, Crab Rangoon Dip, or Queso Dip!
Ingredient Tips
Refer to the recipe card for the full list of ingredients and measurements!
- yellow onions and shallots – I recommend slicing these into 1/8″ thin slices with a mandolin for most uniform slices.
- unsalted butter – there is already salt in this recipe, so I recommend using unsalted butter
- white wine – if you can’t use white wine, substitute with chicken stock/broth
- balsamic vinegar – if you don’t have balsamic vinegar, you can substitute with worchestersauce or soy sauce.
- dried thyme – if using fresh thyme, double the amount
- cream cheese – make sure the cream cheese is softened so there are no lumps when mixed with the sour cream
How to Make Caramelized Onion Dip
Peel and Slice Onions and Shallots – Peel the onions and slice in half through the root. Peel the shallots and thinly slice both of them to about 1/8 inch thick with a mandolin or knife.
Caramelize Onions and Shallots – In a large wide skillet, melt the butter over medium heat. Turn the heat to medium high, add the onions and shallot, then season with salt and sugar and saute for 30-35 minutes, stirring occasionally to prevent burning, using a few splashes of wine once brown bits begin to form as a deglaze (around the 15-20 minute mark). Continue cooking and stirring occassionally until the onions and shallot are deep golden brown and the wine is fully incorporated.
Season and Mix – Add the balsamic vinegar, dried thyme, black pepper, grated garlic. Cook for 1 minute until the garlic is fragrant and let cool for 5 minutes. In a separate bowl, mix the sour cream, cream cheese, parsley, chives until smooth. Add the cooled onion mixture mix until fully combined. Serve warm or cooled with thick cut potato chips.

PRO TIPS
CJ’s Make Ahead & Storage Tips
If you want to make this ahead of time, you can:
- prepare the Caramelized Onion Dip (do not add parsley and chives) and then cover it tightly with plastic wrap or in an airtight container and refrigerate for up to 48 hours. When ready, bring it out of the refrigerator 1 hour before serving so the dip is softened and not as cold (or warmed up in the microwave). Add the parsley and chives and give it a stir.
- cook the caramelized onions only and then store in an airtight container in the refrigerator for 2-3 days. When ready, resume following this recipe and finish making the dip.
Store any leftover Caramelized Onion dip in an airtight container for up to 3-4 days. I love how dips taste the next day, as the flavors have had enough more time to meld together! Serve cold or reheat in the microwave until warmed through.
If you tried this Caramelized Onion Dip Recipe or any other recipe on my website, please leave a 🌟 star rating and let me know how it went in the comments below!
Caramelized Onion Dip (VIDEO)

Equipment
- Mandolin I highly recommend using this so the onion and shallot slices will be uniform and caramelize evenly in the pan.
Ingredients
- 3 large yellow onions, thinly sliced to 1/8″ thickness
- 2 medium shallots, thinly sliced to 1/8″ thickness
- 3 tablespoons unsalted butter
- ½ tablespoon kosher salt
- ½ tablespoon sugar
- 1/3 cup white wine
- 1 tablespoon balsamic vinegar
- ½ teaspoon dried thyme
- ½ teaspoon black pepper
- 2 cloves garlic, grated
- 8 oz cream cheese, softened
- 16 oz sour cream
- 1 tablespoons flat leaf parsley, minced
- 1 tablespoon fresh chives
- Thick cut potato chips, for serving
Instructions
- Peel the onions and slice in half through the root. Peel the shallots and thinly slice both of them to about 1/8 inch thick with a mandolin or knife.
- In a large wide skillet, melt the butter over medium heat. Turn the heat to medium high, add the onions and shallot, then season with salt and sugar and saute for 30-35 minutes, stirring occasionally to prevent burning, using a few splashes of wine once brown bits begin to form as a deglaze (this will begin around the 15-20 minute mark). Continue cooking and stirring occassionally until the onions and shallot are deep golden brown and the wine is fully incorporated.
- Add the balsamic vinegar, dried thyme, black pepper, grated garlic. Cook for 1 minute until the garlic is fragrant and let cool for 5 minutes.
- In a separate bowl, mix the sour cream, cream cheese, parsley, and chives until smooth. Add the onion mixture to the bowl and mix until fully combined. Serve warm or cooled with thick cut potato chips.
Video
Notes
- yellow onions and shallots – I recommend slicing these into 1/8″ thin slices – I highly recommend a mandolin for this so that the slices will caramelize evenly.
- unsalted butter – there is already salt in this recipe, so I recommend using unsalted butter
- white wine – if you can’t use white wine, substitute with chicken stock/broth
- balsamic vinegar – if you don’t have balsamic vinegar, you can substitute with worchestersauce or soy sauce.
- dried thyme – if using fresh thyme, double the amount
- cream cheese – make sure the cream cheese is softened so there are no lumps when mixed with the sour cream
- prepare the Caramelized Onion Dip (do not add parsley and chives) and then cover it tightly with plastic wrap or in an airtight container and refrigerate for up to 48 hours. When ready, bring it out of the refrigerator 1 hour before serving so the dip is softened and not as cold (or warmed up in the microwave). Add the parsley and chives and give it a stir.
- cook the caramelized onions only and then store in an airtight container in the refrigerator for 2-3 days. When ready, resume following this recipe and finish making the dip.
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.











