Name: Tennessee Onion Dip Recipe
Prep time: 20 min
Cook time: 25 min
Total time: 45 min
Cuisine: American Southern
Ingredients: 2 large chopped sweet onions (Vidalia recommended); 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 undeniably comforting about a warm, cheesy dip with sweet caramelized onions that hits just the right note. This Tennessee Onion Dip Recipe combines those flavors beautifully, turning classic onion dip into an irresistibly rich, cheesy treat that's perfect for sharing.

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

Honestly, every time I make this Tennessee Onion Dip Recipe, it’s a huge hit — whether it’s game day, a weekend get-together, or even just a relaxing night at home. The blend of smoky gouda and sharp cheddar with sweet onions creates a depth of flavor that’s cozy, indulgent, and downright addicting.

Rich Flavor Layers: The combination of two types of cheese plus caramelized onions gives it a unique, savory-sweet balance you don’t get with classic onion dip.
Simple Ingredients: You probably have most of these in your fridge already, making it easy to whip up last minute.
Warm & Inviting: Baking it until bubbly creates that irresistible melty texture everyone loves.
Versatile for Serving: Goes great with crackers, bread, or crostini — perfect crowd-pleaser for any occasion.

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

Every ingredient in this Tennessee Onion Dip Recipe plays a key role — from the sweetness of the onions to the creamy texture of the cheeses. Picking good-quality ingredients will make a noticeable difference, especially with the onions and cheeses.

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 like Vidalia for the natural sweetness, which caramelizes wonderfully and balances the cheese.
Unsalted Butter: Melts and helps soften the onions without overpowering them.
Mayonnaise: Adds creaminess and a little tang, helping bind the dip.
Cream Cheese: Brings a smooth richness that makes the dip irresistibly silky.
Garlic Powder: Enhances the savory profile without the bite of fresh garlic.
Dried Thyme: Adds a subtle herbal note that complements the sweetness of the onions.
Salt: Brings all the flavors together — critical for balancing sweetness and richness.
Cheddar Cheese: Sharp and melty, it adds punch and depth.
Smoked Gouda Cheese: Adds a smoky layer that’s surprisingly comforting and complex.
Chopped Parsley: For fresh color and a slight peppery brightness as a garnish.

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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 love about this Tennessee Onion Dip Recipe is how easy it is to tweak it to your taste. Whether you want it extra cheesy, a bit spicier, or dialed back for a lighter snack, you can customize it without losing the soul of the dip.

Variation: I’ve tried swapping smoked gouda for pepper jack for a little heat, and it gave the dip a nice kick without overpowering the sweetness.
Dietary swap: Using Greek yogurt instead of mayonnaise lightens it up while keeping it creamy.
Herb twist: Fresh rosemary or sage instead of thyme adds a different aromatic touch that’s lovely in fall or winter.
Make it vegan: I haven’t personally made a vegan version, but using plant-based cream cheese, vegan mayonnaise, and vegan cheese blends should work great here.

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

Step 1: Slowly caramelize the onions

I start by melting butter in a large oven-safe skillet over medium heat. Then, I add the chopped sweet onions and cook them gently for about 15 minutes, stirring often. You want them soft and tender, with just a touch of golden color—not burnt. This slow cooking draws out their natural sweetness, which makes the flavor shine later.

Step 2: Mix in the creamy ingredients and spices

Once the onions are soft and fragrant, I remove the skillet from heat and stir in mayonnaise, softened cream cheese, garlic powder, dried thyme, and salt. Then I fold in the shredded cheddar and smoked gouda cheeses, making sure everything is well combined.

Step 3: Bake until bubbly and golden

Sliding the skillet into a 375°F oven, I let it bake for 25 minutes until you see that beautiful bubbling and the top turning slightly golden. The aroma filling the kitchen at this point is seriously something special—it’s worth the wait!

Step 4: Garnish and serve

As soon as it comes out of the oven, I sprinkle chopped parsley over the top for a fresh pop of color. Serve it warm with your favorite crackers, crusty bread, or crostini — everyone digs right in.

Top Tip

I’ve learned a few things making this dip over the years that make all the difference between “just good” and “oh wow” dip. These nuggets will help you nail it every time.

Low and slow onions: Patience when cooking onions is key. Rushing them leads to bitterness instead of sweetness.
Room temperature cream cheese: Make sure your cream cheese is softened before mixing; it blends more smoothly and avoids lumpy texture.
Oven-safe skillet: Use a skillet that can go from stovetop to oven so you can caramelize and bake without extra dishes.
Don’t skip the garnish: Parsley might seem minor, but it adds a fresh contrast that brightens the cheesy richness beautifully.

How to Serve Tennessee Onion Dip Recipe

Tennessee Onion Dip - Serving Suggestion

Garnishes

I almost always top the dip with a sprinkle of fresh chopped parsley – it’s an easy touch that adds color and a subtle earthy flavor. Occasionally, I toss in a bit of finely chopped chives for a delicate onion-y hint that complements the caramelized onions.

Side Dishes

This dip pairs beautifully with crisp crackers, toasted baguette slices, or crunchy vegetable sticks like celery and bell peppers. I also like offering a bowl of it alongside a spread of smoked meats and cheeses — it fits right in with a charcuterie board.

Creative Ways to Present

For holiday parties or special occasions, I’ve served this Tennessee Onion Dip Recipe in a hollowed-out bread boule, turning it into an edible dip bowl. It’s always a crowd-pleaser and saves a plate! You could also arrange it in small ramekins for individual servings, making it easy to pass around.

Make Ahead and Storage

Storing Leftovers

After enjoying the dip, I promptly move any leftovers to an airtight container and pop it in the refrigerator. It keeps well for up to two days. Just remember the texture and flavor are best fresh, so try to enjoy it soon after making.

Freezing

I don’t recommend freezing this Tennessee Onion Dip Recipe because the texture of the cheeses changes when thawed, and the onions can become watery. Trust me, it’s better fresh or refrigerated.

Reheating

For leftovers, I gently reheat in the microwave in short bursts, stirring in between, or place it back in a low oven (about 300°F) until warm and melted. Avoid overheating to keep the creamy texture intact.

Frequently Asked Questions:

Can I make Tennessee Onion Dip Recipe ahead of time?

Absolutely! You can caramelize the onions ahead, then mix the rest of the ingredients right before baking. This helps save time when you’re ready to serve.

What’s the best cheese combination for this dip?

The classic combo is sharp cheddar and smoked gouda — they melt well and offer a great balance of sharpness and smoky richness. You can experiment with similar melting cheeses, but these two really make the dip shine.

Can I use fresh herbs instead of dried thyme?

Yes! Fresh thyme is a wonderful substitute; use about a tablespoon of fresh leaves. Just add it towards the end of cooking to preserve the flavor.

What should I serve with Tennessee Onion Dip?

Try it with crispy crackers, toasted baguette slices, vegetable sticks, or even as a spread on sandwiches. It also pairs beautifully on a party platter with cured meats and other cheeses.

Final Thoughts

Whenever I make this Tennessee Onion Dip Recipe, it feels like sharing a warm, cheesy hug with friends and family. Its comforting, rich flavors bring people together without fuss or fancy ingredients. Give it a try—you’ll be amazed how easy it is to elevate simple onions and cheese into something truly special.