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 preferred); 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 truly comforting about a warm, cheesy dip loaded with sweet caramelized onions, and this Tennessee Onion Dip Recipe hits all those cozy notes. It’s a crowd-pleaser that transforms simple ingredients into a rich, flavorful treat you'll want to serve all year round.

A black pan filled with a baked dip featuring a top layer of melted golden brown cheese scattered with small bits of green herbs. Underneath, you see soft caramelized onion pieces and creamy, cheesy chunks. A woman's hand is dipping a lightly toasted, golden bread slice with a textured surface into the dip. More toasted bread slices rest in the background on a white marbled surface. The whole scene shows a warm, cheesy, and inviting dish. 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 have to say, this Tennessee Onion Dip Recipe holds a special place in my heart — it's the kind of dip that makes parties feel extra personal, and family gatherings more memorable. The mix of smoky gouda and sharp cheddar with those slow-cooked sweet onions just works like magic.

True Southern Charm: This recipe honors the sweet, savory flavors Tennessee is known for, bringing a taste of the South to your table.
Cheese Lover’s Dream: Combining smoked gouda with sharp cheddar creates an irresistible creamy, melty texture.
Simple Yet Sophisticated: Using everyday ingredients transformed through slow cooking and baking means anyone can nail this dip.
Perfect Crowd-Pleaser: Whether it’s a casual game day or holiday party, this dip disappears fast—so be ready to make seconds!

A round black skillet filled with a cheesy dip that has a golden brown, slightly crispy top layer sprinkled with small green herb pieces. The dip shows creamy white and orange shades with visible soft chunks inside, likely onions or cheese. Several toasted white bread slices with herb seasoning are partially dipped into the skillet on the right side, while more bread slices are scattered around the skillet on a white marbled surface. The texture of the dip appears smooth with some melted cheese strands and slightly browned spots near the edges. Photo taken with an iphone --ar 2:3 --v 7

Ingredients & Why They Work

Let’s talk about the magic behind this Tennessee Onion Dip Recipe. Each ingredient plays its role—balancing sweetness, creaminess, and that essential cheesy goodness. I always recommend choosing quality ingredients because they truly make a difference.

Flat lay of two large chopped sweet Vidalia onions, a stick of unsalted butter, a bowl of creamy mayonnaise, a block of softened cream cheese, piles of shredded sharp cheddar cheese and smoked gouda cheese, a small heap of dried thyme, a teaspoon of garlic powder, and fresh chopped parsley sprinkled artistically, all arranged beautifully on a white marble surface, photo taken with an iphone --ar 2:3 --v 7

Sweet Onions: I love Vidalia for their natural sweetness, which caramelizes beautifully and gives that classic Southern onion flavor.
Unsalted Butter: Using unsalted lets you control the saltiness; plus, it helps soften the onions gently without burning.
Mayonnaise: Adds creaminess and moisture while cutting through the richness of the cheeses.
Cream Cheese: Softened cream cheese lends a luscious texture and tangy undertone that blends the dip together perfectly.
Garlic Powder & Dried Thyme: These herbs add depth and a hint of earthiness without overpowering the sweet onion base.
Salt: Enhances all the flavors; I always recommend starting with half the salt and adjusting to your taste after mixing.
Shredded Cheddar Cheese: Sharp and bold, cheddar adds that unmistakable savory punch everyone expects in a great dip.
Shredded Smoked Gouda Cheese: This smoky addition brings warmth and unique complexity, elevating the dip from basic to memorable.
Chopped Parsley: Fresh parsley sprinkled on top adds a touch of color and freshness just before serving.

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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 appreciate most about the Tennessee Onion Dip Recipe is how forgiving it is. I often tweak it slightly depending on the occasion or what's on hand—feel free to make it your own!

Variation: Sometimes I'll swap smoked gouda for fontina or even Monterey Jack for a milder melt if I’m serving to kids—still delicious and creamy!
Make it Spicy: A pinch of cayenne pepper or a few dashes of hot sauce can add an exciting kick if you like a little heat.
Herb Boost: Fresh thyme or rosemary chopped finely rather than dried can add a fresh green herb note that brightens the dip.
Make it Dairy-Free: For friends with dairy restrictions, I’ve had success using dairy-free cream cheese and vegan shredded cheese alternatives.

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

Step 1: Slowly Caramelize the Sweet Onions

Start by chopping your sweet onions into even pieces to ensure they cook uniformly. Melt your unsalted butter in a large oven-safe skillet over medium heat. Add the onions and stir frequently—patience here pays off. Cook them for about 15 minutes until they’re soft, translucent, and lightly caramelized. This slow cooking develops all those lovely sweet flavors without burning or bitterness.

Step 2: Mix in the Creamy Ingredients & Spices

Remove the skillet from the heat and add mayonnaise, softened cream cheese, garlic powder, dried thyme, and salt. Stir until everything is smooth and combined. This step is where the dip’s luscious cream texture really starts to come together.

Step 3: Add the Cheeses and Bake

Sprinkle shredded cheddar and smoked gouda evenly over the mixture and gently fold them in. Place the skillet in your preheated oven at 375°F and bake for about 25 minutes. You want the dip to bubble and the cheeses to melt fully, forming a golden, irresistible top.

Step 4: Garnish and Serve

Once baked, carefully remove the skillet—you’ll see those gooey, molten cheese edges calling your name. Sprinkle chopped fresh parsley on top for an inviting splash of green and serve warm with your favorite crackers, toasted crostini, or sturdy bread slices.

Top Tip

Having made this Tennessee Onion Dip Recipe countless times, I’ve learned a few small tricks that make all the difference in texture and flavor. These tips will save you from frustrating slip-ups and give you a dip that everyone will be asking for.

Take Your Time with Onions: Rushing the onion cooking step leads to bland or burnt onions. Stir often and use medium heat for the best caramelization.
Softened Cream Cheese is Key: Make sure the cream cheese is softened to room temperature so it blends smoothly without lumps.
Use an Oven-Safe Skillet: This means no transferring the dip mid-way, so less mess and better heat distribution.
Don’t Skip the Parsley: The fresh herb makes a subtle but noticeable brightness that uplifts the rich, savory dip beautifully.

How to Serve Tennessee Onion Dip Recipe

Tennessee Onion Dip - Serving Suggestion

Garnishes

I always top the dip with freshly chopped parsley. Its freshness contrasts the richness and adds a pretty green pop that makes it inviting on the table. Sometimes a few sliced green onions add a mild onion crunch that’s delightful too.

Side Dishes

This dip pairs wonderfully with hearty crackers, crusty French baguette slices toasted until golden, or even sturdy pita chips. For a veggie twist, I like to serve alongside raw carrot sticks or crisp celery to balance out the creamy richness.

Creative Ways to Present

For holiday parties, I’ve served this dip inside a hollowed-out bread bowl, which looks impressive and deliciously edible! You can also sprinkle extra cheese and some smoked paprika on top before baking for an eye-catching crust.

Make Ahead and Storage

Storing Leftovers

Store any leftovers in an airtight container in the fridge, where it keeps well for up to 2 days. I recommend scooping into smaller containers if you won’t finish it right away, to minimize exposure to air.

Freezing

I usually don’t freeze Tennessee Onion Dip Recipe because the texture can get grainy after thawing, especially with the cream cheese and mayo base. If you do freeze it, expect a slight change and try to use it within a month.

Reheating

For reheating, microwave on low in short bursts, stirring in between, or use a low oven setting until gently warmed through. This keeps the cheese from separating or becoming rubbery—a trick I learned after many a first attempt!

Frequently Asked Questions:

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

Absolutely! While I prefer Vidalia or other sweet onions for their natural sweetness, you can use yellow or white onions. Just keep in mind that cooking time might vary and flavors may be slightly sharper with other types.

What are the best dippers for this onion dip?

The best dippers bring texture contrast—think sturdy crackers, toasted baguette slices, pita chips, or fresh veggies like celery and carrots. Choose something that can hold up to scooping and balances the creamy richness.

Can I make the Tennessee Onion Dip Recipe ahead of time?

Yes! You can prepare the onion mixture ahead and refrigerate it for a day, then bake it fresh before serving. This helps deepen the flavors and makes party prep easier.

What’s the best way to reheat leftovers?

I recommend reheating gently on low in the oven or microwave short bursts, stirring in between, to keep the cheese smooth and prevent curdling or rubbery texture.

Final Thoughts

Making this Tennessee Onion Dip Recipe brings me back to heartwarming gatherings and casual fun with friends. It’s one of those recipes that feels like a warm hug in food form, simple to make but truly impressive in flavor. I hope you enjoy making—and sharing—it as much as I do!