Name: Tennessee Onion Dip Recipe
Prep time: 20 min
Cook time: 25 min
Total time: 45 min
Cuisine: American
Ingredients: 2 large chopped sweet onions (Vidalia); 2 tablespoons unsalted butter; 1 cup mayonnaise; 4 ounces softened cream cheese; 1 teaspoon garlic powder; 1 teaspoon dried thyme; ½ teaspoon salt; 1 cup shredded cheddar cheese; 1 cup shredded smoked gouda cheese; Chopped parsley for garnish

There’s something incredibly comforting about a creamy, cheesy dip packed with caramelized onions, and this Tennessee Onion Dip Recipe captures that rustic charm perfectly. It’s the kind of dish that feels like a warm hug from the South—rich, flavorful, and effortlessly crowd-pleasing when guests show up or you want to treat yourself.

The image shows a close-up of a black pan filled with a baked dip that has a golden-brown top layer of melted cheese sprinkled with small green herb pieces. Underneath the cheese layer, there are visible chunks of cooked onions and creamy dip. A woman's hand is dipping a toasted, golden-brown slice of bread into the creamy mixture, lifting some of it from the pan. The background surface is a white marbled texture with more slices of toasted bread softly blurred behind the pan. photo taken with an iphone --ar 2:3 --v 7

Jump to:

Why You'll Love This Recipe
Ingredients & Why They Work
Make It Your Way
Step-by-Step: How I Make Tennessee Onion Dip Recipe
Top Tip
How to Serve Tennessee Onion Dip Recipe
Make Ahead and Storage
Frequently Asked Questions:
Final Thoughts
Tennessee Onion Dip Recipe

Why You'll Love This Recipe

I’ve shared this Tennessee Onion Dip Recipe with friends, and it quickly became a party staple in my circle. It’s got a perfect balance of sweet onions and melty cheeses that make every chip dunk feel like a little celebration. Here’s why it stands out:

Deep, sweet onion flavor: Slow-cooking sweet onions unlocks natural sugars that bring warmth and depth.
Cheesy richness: A combo of cheddar and smoked gouda melts smoothly, giving a smoky, creamy finish.
Easy but impressive: You’re basically layering simple ingredients, but the result is way more gourmet than effort suggests.
Perfect for sharing: Makes enough to serve a small party, and everyone always asks for the recipe.

The image shows a round black skillet filled with a thick, creamy dip that has a golden-brown top layer of melted cheese with a slightly crispy texture and scattered bits of herbs. The cheese layer is uneven, revealing a softer, cheesy and chunky inside with visible pieces of onions. Light golden toasted bread slices are placed on the side of the skillet and some are partially dipped into the cheese mixture. The skillet is set on a white marbled surface with extra toasted bread slices scattered around, and the edge of a beige cloth is seen in the corner. photo taken with an iphone --ar 2:3 --v 7

Ingredients & Why They Work

Choosing the right ingredients is key to nailing the flavor and texture of this Tennessee Onion Dip Recipe. The sweet onions, creamy cheeses, and seasonings all play a role to create something irresistible. Here’s why each one matters:

Flat lay of two large sweet Vidalia onions, a small pat of unsalted butter, a dollop of creamy mayonnaise, a block of soft cream cheese, a sprinkle of dried thyme and garlic powder, a pile of shredded sharp cheddar cheese and smoky gouda cheese side by side, and fresh chopped parsley scattered lightly around, all beautifully arranged and placed on a white marble surface, photo taken with an iphone --ar 2:3 --v 7

Sweet onions: Vidalias are my go-to for their natural sweetness; they soften and caramelize beautifully without added sugar.
Unsalted butter: Helps gently cook the onions without overpowering their flavor, plus it adds richness.
Mayonnaise: Adds creaminess and a subtle tang that balances the sweetness.
Cream cheese: Softened for easy mixing, it boosts the dip's smooth, luscious texture.
Garlic powder: Just enough to add a savory backdrop without overwhelming the onions.
Dried thyme: It brings a subtle herbal earthiness that complements the sweet and smoky notes.
Salt: Essential for balancing flavors; adjust to your taste but don’t skip it.
Shredded cheddar cheese: Sharp and flavorful, it melts perfectly for classic cheesiness.
Shredded smoked gouda cheese: Adds a deeper smoky flavor and creaminess that sets this dip apart.
Chopped parsley: Freshness to brighten the finished dish and add a pop of color.

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Note: You'll find the complete list of ingredients, along with their exact measurements, in the printable recipe card at the bottom of this post.

Make It Your Way

One of the things I really love about this Tennessee Onion Dip Recipe is how easy it is to tweak and make your own. I often play with the cheese ratios or add my own twist on herbs–you’ll find your favorite version in no time.

Variation: I once swapped smoked gouda for a sharp gruyère, which added a nutty twist that my family couldn’t stop raving about.
Dietary tweak: For a lighter option, try reduced-fat cream cheese and mayo, but keep the butter for flavor—just less of it.
Add some heat: A pinch of cayenne or chopped jalapeños can bring a surprising kick without stealing the spotlight.
Seasonal touch: In fall, I love tossing in a hint of fresh sage instead of thyme—it pairs beautifully with sweet onions.

Step-by-Step: How I Make Tennessee Onion Dip Recipe

Step 1: Slow-cook those sweet onions

Start by melting unsalted butter over medium heat in a large oven-safe skillet. Toss in your chopped sweet onions and cook them low and slow—around 15 minutes—until they’re soft, tender, and starting to turn golden. Stir often to keep them from sticking or burning. This step builds the sweet, caramelized base that makes this dip sing.

Step 2: Stir in creamy, flavorful ingredients

Remove the skillet from the heat and add the mayonnaise, softened cream cheese, garlic powder, dried thyme, salt, shredded cheddar, and smoked gouda. Mix everything together until it’s wonderfully combined. This blend of creamy and cheesy goodness is what takes the dip to the next level.

Step 3: Bake until bubbly and golden

Pop your skillet into the preheated oven at 375°F and bake for about 25 minutes. You’re looking for a bubbly dip with melted cheese on top that’s just a little golden. Keep an eye on it—every oven’s a bit different, so if it starts browning too much before bubbling, lower the heat slightly.

Step 4: Garnish and serve

Once out of the oven, sprinkle chopped parsley across the top to add fresh color and a hint of herbiness. Serve the dip warm with your favorite crackers, crispy crostini, or fresh bread for dunking. Trust me, people will be asking for this on repeat.

Top Tip

From testing this recipe several times, I’ve gathered some handy tips that make all the difference. These little tricks helped me avoid common pitfalls and get that perfect dip every single time.

Onion Prep: Chop your onions evenly to ensure they cook uniformly and soften beautifully without burning.
Butter Temperature: Melt the butter slowly over medium heat and don’t rush the onions; the sweetness develops best on gentle heat.
Cheese Shred: Use freshly shredded cheese instead of pre-shredded—fresh melts better and tastes fresher.
Baking Vessel: An oven-safe skillet is ideal as it goes straight from stove to oven, saving cleanup and keeping flavors intact.

How to Serve Tennessee Onion Dip Recipe

Tennessee Onion Dip - Serving Suggestion

Garnishes

I always finish my Tennessee Onion Dip Recipe with chopped fresh parsley. It adds a nice pop of green and a mild herbal note that cuts through the richness. Sometimes I toss in a sprinkle of smoked paprika for an extra splash of color and smoky aroma.

Side Dishes

For dipping, I love pairing this onion dip with crunchy crackers, toasted baguette slices, or even crispy veggie sticks like carrots and celery to balance the creaminess. It’s also fantastic alongside a charcuterie board or as part of a casual game day spread.

Creative Ways to Present

For special occasions, I’ve tried serving this dip in hollowed-out mini bread bowls—super fun and perfect for sharing. Another time, I layered the dip in a casserole dish topped with extra cheese and broiled it for a golden crust that everyone adored.

Make Ahead and Storage

Storing Leftovers

After a party, I usually spoon leftover Tennessee Onion Dip Recipe into an airtight container and refrigerate it. It keeps well for up to 2 days, and I advise storing it chilled to maintain the texture. Enjoy within that timeframe for the best flavor and safety.

Freezing

I don’t recommend freezing this dip because the texture of the cheeses and onions changes once thawed — it becomes watery and a bit grainy, which isn’t as pleasant. Fresh is definitely best here.

Reheating

To reheat, I gently warm leftovers in the microwave in short bursts, stirring in between, or in a low oven (around 300°F) until warmed through and melted. Avoid overheating to keep the cheese smooth rather than separating.

Frequently Asked Questions:

Can I use other types of onions in this Tennessee Onion Dip Recipe?

Absolutely! While sweet onions like Vidalias are ideal for their natural sweetness, you can use yellow onions if that’s what you have. Just cook them a bit longer to develop that sweetness and softness.

What’s the best way to soften cream cheese for this recipe?

The easiest way is to let cream cheese sit out at room temperature for about 30 minutes before mixing. If you’re short on time, you can soften it in short bursts in the microwave (10-15 seconds), but watch closely so it doesn’t melt.

Can this Tennessee Onion Dip Recipe be made ahead of time?

You can prepare the onions and mix the dip ingredients ahead of time and keep it refrigerated. Then, bake it fresh when you’re ready to serve. This keeps the texture fresher and the dip bubbling hot.

What are some good dippers for this onion dip?

Classic choices like potato chips, pita chips, or toasted baguette slices work wonderfully. For a lighter option, fresh veggies like celery sticks, carrot sticks, or cucumber slices also pair nicely and add crunch.

Final Thoughts

This Tennessee Onion Dip Recipe is one of those little kitchen treasures I keep coming back to because it never disappoints. The way those sweet onions mingle with the smoky cheese and creamy base just hits the spot every time. I hope you give it a try and find yourself reaching for it again and again—trust me, your family and friends will thank you!