This post may contain affiliate links. Please read our disclosure policy.
Sweet, savory caramelized onions are combined with tangy sour cream and cream cheese, plus a few seasonings, to make this Caramelized Onion Dip. There’s real caramelized onion in every bite! Serve with salty chips or fresh veggies for an appetizer dip everyone will love.

Forget French onion dip, this caramelized onion dip is the new must-make for every party, game day, and gathering. Instead of a powdered mix or plain cooked onions, this dip is loaded with soft, sweet caramelized onions. Cooked in butter and dry white wine, the caramelized onions are sweet, savory, and decadent; the perfect contrast to the tangy cream cheese and sour cream!
This recipe uses the same process to make caramelized onions as my French onion soup. They add so much flavor that there’s no need to add any French onion soup mix, as I did in my French onion cheese ball.
Why This Caramelized Onion Dip Is The Absolute Best
- Sweet caramelized onion flavor. Caramelizing the onions completely changes the flavor, making them much sweeter than regular onions. And not only does this dip have the flavor, but there are diced caramelized onions in every bite.
- Thick, smooth, and creamy. The base of this dip is a combination of cream cheese and sour cream. It adds a thick texture that’s still dippable when served chilled and the tangy flavor works nicely with the sweet onions.
- Super easy to make. I won’t say that this dip is quick to make, because caramelizing the onions can take up to 40 minutes. (And can be done in advance!) But the process is easy and assembling the dip takes just minutes.

Ingredient Notes
Here’s an overview of the ingredients needed to make this dip and why each one is important. Be sure to scroll down to the recipe card at the end of the post for the exact measurements.
- Onions – I like to use yellow onions because they have the sweetest flavor but other varieties work too. The key is to make sure they’re all sliced to ¼” thick so they caramelize evenly.
- Butter – I use salted butter for the added flavor.
- Salt & sugar – Adding equal amounts of both really creates the best caramelized flavor on the onions.
- Dry white wine – The liquid helps the onions caramelize without burning. You can use water if you don’t cook with wine but I think the flavor really helps here.
- Sour cream – You could substitute part or all of this with Greek yogurt, though it may change the flavor slightly.
- Cream cheese – Be sure to use full-fat brick cream cheese, not the whipped cream cheese in the containers. Soften so it’s easy to mix.
- Garlic – Fresh garlic adds extra flavor to the dip.
- Parsley – Parsley adds flavor and a pop of bright green color to the dip.
- Worcestershire sauce – Adds deep savory notes that work really well with the onions.
How To Make Caramelized Onion Dip
Caramelizing the onions takes a bit of time but it’s worth every second! The printable instructions can be found below.


- Cook the onions. Melt the butter in a skillet over medium heat. Stir in the onions, salt, and sugar. Cook for medium/medium-low, stirring every few minutes.
- Add the wine. Once the onions begin sticking to the pan, add a splash of wine. Stir to scrape all the brown bits off the bottom. Repeat the process of cooking, adding a splash of wine, and stirring, until everything is reduced and the onions are a dark golden brown. This will likely take 30-40 minutes.


- Dice the onions. Transfer the caramelized onions to a cutting board. Chop into small pieces.
- Combine. Whisk the sour cream and cream cheese in a bowl until smooth. Stir in the onions and parsley, followed by the minced garlic and Worcestershire sauce. Stir until everything is fully combined.
- Enjoy. Serve immediately, while the onions are warm, or cover and refrigerate for later.
The Key To Perfectly Caramelized Onions
The caramelized onions are the most important part of this dip. You want them soft, sweet, and dark golden brown.
The key is to cook them low and slow and stir frequently. Increasing the heat will not decrease the cook time, it will just result in burnt onions. Definitely not what you want!
Add the wine in splashes, deglazing the bottom of the pan each time, and letting the onions cook down a bit before adding more. If you run out before the onions are finished cooking, you can add splashes of water instead.
The most important thing is to give it time. This is not a process that can be rushed but the end result is worth the effort.

Ways To Serve It
Caramelized onion dip is excellent served with salty chips. I recommend a sturdier variety, such as plain Ruffles, that can really withstand the weight of the dip. It’s also great with fresh veggies, like cherry tomatoes, carrot sticks, cucumber rounds, celery, and broccoli.
We’ve also discovered it works great as a condiment on sandwiches and burgers. Consider spreading a bit of on a smash burger, chicken burger, or steak sandwich for an extra bit of flavor.

Make Ahead & Storage
- Storage: Store leftover caramelized onion dip in an airtight container in the fridge. It’s best enjoyed within 3-4 days.
- Make ahead: The caramelized onions can be prepared a day or two in advance and kept in an airtight container in the fridge. Then, just reheat in the microwave and assemble the dip as usual.
Caramelized Onion Dip
Ingredients
- 2 large yellow onions, (or 3 medium) , peel and sliced 1/4” thick.
- 2 Tablespoons salted butter
- 2 teaspoons salt
- 2 teaspoons sugar
- ¼ cup dry white wine
- 12 ounces sour cream, room temperature
- 8 ounces cream cheese, brick not whipped, softened
- 1 teaspoon minced garlic
- ¼ cup fresh parsley, minced
- 1 teaspoon Worcestershire sauce
Instructions
- Heat a heavy-bottomed skillet over medium heat.
- Add the butter and allow it to melt.
- Add the sliced onions, salt, and sugar, and stir together.
- Allow the onions to cook over medium/medium-low heat and stir every few minutes to keep the onions from sticking to the bottom of the pan.
- When the onions start to stick to the pan, add a splash of the wine and stir to scrape all the brown bits off the bottom. Continue the process of cooking, splash of wine and stirring until everything is reduced and the onions are a dark golden brown.
- Place the onions on a cutting board and roughly chop the onions into smaller pieces.
- In a medium bowl, combine the sour cream and cream cheese and whisk to combine and smooth out.
- Add the onions and the minced parsley and stir to fully combine.
- Add minced garlic and Worcestershire sauce. Stir to combine.
- Serve warm immediately or cover and refrigerate until ready to serve.
Notes
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.
Like this? Leave a comment below!
Leave a comment & rating below, or tag @kitchenfunwithmy3sons on social media!











