Hot Caramelized Onion Dip with Bacon & Gruyere

Name: Hot Caramelized Onion Dip
Prep time: 35 min
Cook time: 15 min
Total time: 50 min
Yield: 6
Cuisine: American
Ingredients: 5 slices bacon; 2 sweet onions, halved and thinly sliced; 1 large pinch kosher salt; 1 Tablespoon light brown sugar; 1 Tablespoon sherry; 1/2 cup mayonnaise; 1/2 cup sour cream; 1 1/2 cup shredded Gruyere cheese, divided

Updated: Sep 15, 2025 · Published: Feb 9, 2023 by Kristy Bernardo · 121 Comments

Jump straight to the recipe here (but you'll miss a lot of good info)!

This Hot Caramelized Onion Dip is loaded with sweet onions, bits of bacon and cheesy gruyere and is perfect for an easy, make-ahead holiday or game day appetizer.

I'm such a huge fan of caramelized onions - I could eat a bowlful with nothing else - adding a little bacon and cheese just makes it even better. A very sophisticated flavor for a simple dip recipe!

Caramelized Onion Dip Ingredients

Sweet onions: Sweet onions over a low heat slowly bring out a deep, rich, sweet flavor as the natural sugars in the onions caramelize.
Bacon: The bacon crumbles add a salty crunch to this dip while the bacon fat caramelizes the onions for a wonderful salty bacon and sweet onion flavor.
Brown sugar: A little bit of brown sugar enhances the flavor and speeds up the caramelization process.
Kosher Salt: A flavor boost.
Sherry: The sherry is to deglaze, release onion bits from the bottom of the skillet. The alcohol and liquid will burn off and leave a more flavorful base. Red wine (or balsamic), vermouth, marsala, and brandy will work too.
Sour cream: Adds creaminess to the dip. Use full fat, low fat, or fat free sour cream. Plain Greek yogurt can also be substituted.
Mayonnaise: Another creamy ingredient to this dip.
Gruyere cheese: Le Gruyere cheese, or simply Gruyere. Substitute with Jarlsberg. Edom, Gouda, Asiago, or Swiss cheese, in a pinch,

(Scroll down to the bottom for the printable recipe card with exact measurements and recipe instructions.)

How to Make Caramelized Onion Dip

Prepare the Bacon: Cook the bacon until crispy and then crumble on a paper towel.
Caramelize: At a low heat caramelize the onions until soft and golden brown.
Deglaze: Use the Sherry to release the tasty bits from the pan for added flavor.
Mix & Combine: Mix mayo, sour cream and gruyere cheese, combine with the onion mixture and add bacon crumbles.
Bake: Until bubbling and lightly browned on top. Serve hot.

Caramelized Onion Dip Tips

Don't overcrowd the onions or they will not caramelize and cook unevenly.
The key to caramelizing onions is low and slow until soft and golden. Onions cooked at a high are simply grilled onions as caramelization only happens at a low heat.
Stir every 10 minutes so they cook evenly and come out a deep golden brown.
Add a few dashes of Tabasco sauce or other hot sauce, if you prefer.
To thinly slice onions:
- Cut off the stem ends.
- Cut the onion in half lengthwise, tip to root.
- Remove the onion skin.
- Lay each onion half on the flat side and thinly slice each half radially.

Best Caramelized Onion Dip Recipe with Bacon & Gruyere

Dippers & Serving Suggestions

Caramelized onion dip is the perfect addition to a charcuterie board or crudités platter or use these dippers at your next holiday event or game day watch party. I like to slice soft French bread into thin slices then toasted them, a bit like large crostini. It's delicious but heavy, so some grapes or sliced apples on the side would be a nice complement.

Potato chips (ruffle or crinkle cut are better for dipping)
Crunchy Bread (crostini, melba toast, or toasted baguette, French bread)
Vegetables (bell pepper, carrots, celery, cucumbers, endive leaves or bok choy)
Crackers (saltines, Ritz, Triscuits, Wheat thins, or your favorite cracker)
Pretzel crisps or soft pretzels
Bagel chips
Pita chips
Tortilla chips

Make Ahead

Caramelized onion dip can be made ahead 1 to 2 days in advance. Simply prepare the dip and prior to baking store in the fridge in an airtight container or cover the skillet in plastic.

When ready to serve bake in the oven until the dip is bubbling and lightly browned on top.