If you’re looking for an appetizer that sure to be a huge hit, look no further than this caramelized onion dip. With is rich, sweet onions and perfect creamy base, it’s a serious crowd-pleaser.
The first thing to know about this recipe is that id does take time for the onions to caramelize. But other that that, it’s a super-easy, straightforward process. Once you make this dip, you’ll be sure to make it again!
Looking for great appetizer recipes? Try Parmesan Zucchini Bites or Corn Salsa with Basil.
What you’ll need to make caramelized onion dip

Here’s what you’re going to need:
- 3 Tablespoons butter: You’ll need the butter, along with the olive oil, to keep the onions from burning.
- olive oil (drizzle): A little olive oil with butter prevents the butter from browning too quickly. Just drizzle a bit over your butter as you heat it.
- 3 medium-sized onions: You can use any medium-sized onions. Here we used three different onions: white, red, and yellow. Be aware that the red will add some color distortion, but nothing major.
- 1 Tablespoon Marsala wine (or dry white wine): You can also just use some water if you don’t have Marsala wine or dry white wine.
- 1 teaspoon white sugar: Sugar helps with the caramelizing process by adding a dusting of sweet coating, but you can easily get away with not adding sugar.
- 8 ounces cream cheese (softened): Just a block of basic cream cheese will do.
- 1½ cups sour cream:
- ½ teaspoon soy sauce (or Worcestershire sauce):
- kosher salt
- pepper
- chopped chives or parsley (optional)
What to do
The best place to start with this caramelized onion spread recipe is with the onions. You’re essentially just going to want to cut them into small slices. One way is to first cut the ends off, cut them in half, and then cut them into thin slices.

Heat a non-stick pan to medium and add butter pats and olive oil to a non-stick. Once the butter has melted, add the sliced onions. (If you’re pan is not big enough, you may need to use two pans or work in batches.)
After about 10 minutes, once the onions have softened, add the Marsala wine and white sugar. Lower the heat and simmer for about an hour or until the onions have reduced significantly. Be sure to stir occasionally throughout the caramelizing.

As the onions reduce, turn to making the creamy base. It’s super cinchy. Simply combine the cream cheese, sour cream, and soy sauce in a mixing bowl and add salt and pepper to season (about ¼-½ a teaspoon).

Allow the onions to cool on a cutting board, then chop them into small bits. It’s doesn’t need to be finely chopped, just chopped so that the onions aren’t stringy and will make a nice dip. Then, fold the onions into the cream cheese mixture and garnish with chives or chopped parsley.
Serving caramelized onion dip
Oh my gosh is this caramelized onion spread recipe is so versatile! You can use it with pita slices, french bread, cracker, veggies or bits of naan. You can even use it as a spread, such as for burgers or sandwiches.
To take it up a level, try adding fresh bacon bits!
Also try your hand at: Avocado and Cream Cheese Sushi or Dates with Goat Cheese and Honey.
Caramelized Onion Dip
Ingredients
- 3 Tablespoons butter
- olive oil (drizzle)
- 3 medium sized onions
- 1 Tablespoon Marsala wine (or dry white wine)
- 1 teaspoon white sugar
- 8 ounces cream cheese (softened)
- 1½ cups sour cream
- ½ teaspoon soy sauce (or Worcestershire)
- kosher salt
- pepper
- chopped chives or parsley (optional)
Instructions
- Cut the ends off the onions and then cut them in half. Then cut into thin slices.
- Add butter and olive oil to a non-stick skillet on medium heat. Once the butter has melted, add the sliced onions.
- After about 10 minutes, once the onions have softened, add the Marsala wine and white sugar. Lower the heat and simmer for about an hour or until the onions have reduced significantly.
- In a mixing bowl, combine the cream cheese, sour cream, and soy sauce. Add salt and pepper to season (about ¼-½ a teaspoon).
- Allow the onions to cool on a cutting board, then chop into smaller pieces. Add to the cream cheese mixture and gently combine. Transfer the caramelized onion dip to a serving bowl and garnish with chives or chopped parsley.
