Homemade Caramelized Onion Dip

Updated: May 16, 2025 · Published: Jan 28, 2019 by Lacey Baier · This post may contain affiliate links which won’t change your price but will share some commission. · 2 Comments

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This Homemade Caramelized Onion Dip is the perfect match for anything dippable! It’s extra tasty, keto and paleo-friendly, and gluten-free.

I love dips. Spreads, sauces, whatever you like to call them. Some of my dips that I personally enjoy are Healthy Tzatziki Sauce, Homemade Pimento Cheese Spread, and my Queso Dip With Ground Beef.

Branded image of caramelized onion dip with fresh vegetables and chips, labeled “A Sweet Pea Chef.”

In This Post You'll Find:

Reasons You'll Love It
Ingredients For Homemade Caramelized Onion Dip
Step By Step Instructions
Homemade Caramelized Onion Dip Goes Well With:
Recipe FAQs
More Healthy Dip Recipes
Homemade Caramelized Onion Dip
Reviews

One of my favorite things is hanging out on a Sunday with Dustin and the kiddos, watching football, and relaxing in the living room. Aaaaaand, I should probably mention these days also include lots of tasty snacks while we sit around and enjoy the day. If you're looking for tasty–and healthy, snacks then try out my Easy Homemade Baked Pita Chips, Homemade Garlic Fries, and my Olive Oil And Herb Crackers.

A go-to snack food/appetizer in our house is chips and dip. Really, I think it's the only reason our kids enjoy the football games. But it's difficult to justify all the processed ingredients, even if it's on a cheat day. So I got to work creating a yummy, savory, and oh-so-satisfying caramelized onion dip the whole family would enjoy and that we could eat any time without worrying, "What's in this?"

Reasons You'll Love It

Stores easy in a fridge
Savory and delicious
It's healthy, keto and Gluten-Free

Ingredients For Homemade Caramelized Onion Dip

Overhead view of ingredients for caramelized onion dip including yellow onions, Greek yogurt, thyme, garlic, olive oil, sea salt, black pepper, and apple cider vinegar.

Onions: Look for ones that feel heavy for their size, have dry, papery skin, and are free of soft spots or sprouting. Yellow onions are the best choice for caramelized onion dip because their natural sugars deepen in flavor as they cook, creating a rich, sweet-savory base. Onions are so delicious, either in Healthy French Onion Soup or in my tasty snack, Quick Pickled Red Onions.

Greek Yogurt: Greek yogurt adds tanginess and a light, healthy twist, can be swapped for traditional sour cream.

Thyme: Thyme is added to complement the sweetness of the onions with an herbaceous, slightly earthy note. This herb adds such an amazing depth to any dish like my Thyme Roasted Carrots or Stuffed Pork Chops.

Apple Cider Vinegar: A splash of apple cider vinegar is added to the finished dip to provide acidity and brightness, which helps cut through the richness of the caramelized onions and yogurt. You could also use white vinegar.

Step By Step Instructions

Raw sliced onions in a large black skillet being stirred with a black spoon.

Step 1: Add the olive oil to a large pan, add the onions, sea salt, and pepper, and cook, stirring frequently, over medium heat until the onions caramelize into a deep brown color (approx. 12-15 min.).

Deep golden-brown caramelized onions in a skillet, stirred with a black spoon.

Step 2: If the onions are browning too quickly, you can turn down the heat and add a little water.

Mixing caramelized onions with Greek yogurt and thyme in a glass bowl with a spoon.

Step 3: When the onions are done, add the minced garlic, and apple cider vinegar, and stir for 1 minute until the garlic is fragrant.

Bowl of creamy caramelized onion dip served with celery, carrots, bell peppers, and sweet potato chips.

Step 4: Serve with veggies or chips, and enjoy!

Homemade Caramelized Onion Dip Goes Well With:

Chips: Whether you're talking regular chips, Baked Pita Chips, corn tortilla chips, these homemade Whole Wheat Crackers, bean chips, and/or beet chips, chips are probably most people's go-to choice for what to eat.
Veggies: One of my personal favorites. I usually use carrots, celery sticks, and red bell pepper slices.

Horizontal closeup of caramelized onion dip surrounded by colorful vegetables and sweet potato chips.

Recipe FAQs

Is Caramelized Onion Dip Healthy?

If you're wondering if onion dip is healthy, I think it's best to take a look at the pre-packaged stuff that's typically purchased at the store. One of the leading brands of prep-packaged onion dip contains the following ingredients: Water, Sunflower Oil and/or Canola Oil, Onions, Whey Protein Concentrate, Modified Tapioca and Corn Starch, and Less than 2% of the Following: Salt, Sugar, Monosodium Glutamate, Onion Powder, Caramel Color, Natural Flavors, Glucono Delta Lactone, Lactic Acid, Xanthan Gum, and DATEM.
My caramelized onion dip contains the following ingredients: Yellow Onions, Greek Yogurt, Olive Oil, Fresh Thyme, Garlic, Apple Cider Vinegar, Sea Salt, and Black Pepper.

So -- yea -- I'm gonna stick with mine. It's just as flavorful and savory, just as perfect as a dip, and soooooo much better for my family and me.
Not to mention the Greek yogurt, which has it's own set of health benefits as a healthy replacement.

How To Store Caramelized Onion Dip

This dip can be stored in the fridge for up to 5 days. Store it in an airtight container. (For information on the best containers, check out my post, Ultimate Guide to the Best Meal Prep Containers.)

What Are The Best Onions For Onion Dip?

Yellow onions are the best choice for caramelized onion dip because their natural sugars deepen in flavor as they cook, creating a rich, sweet-savory base.