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 irresistibly cozy about this Tennessee Onion Dip Recipe. It’s creamy, cheesy, and packed with the sweet, caramelized goodness of Vidalia onions that just melts in your mouth. Trust me, once you taste it, you’ll want to whip it up again and again for parties or just a comforting snack night.

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 first tried this Tennessee Onion Dip Recipe at a friend's barbecue, and it stole the show. The balance between the sweet onions, creamy cheese, and a hint of thyme makes it a crowd-pleaser every time. Plus, it’s surprisingly simple to make, which I appreciate when I’m juggling other dishes.

Sweet, Caramelized Onions: They add a depth of flavor that lifts this dip way above the ordinary.
Double Cheese Blend: Using both sharp cheddar and smoky gouda creates a gooey, rich texture you’ll crave.
Easy Prep: Just a skillet and an oven—you don’t need fancy equipment or hours in the kitchen.
Versatility: Perfect for game days, potlucks, or cozy nights in with crackers or crusty bread.

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

Each ingredient in the Tennessee Onion Dip Recipe plays an important role in creating its signature flavor and texture. Using sweet onions means the dip isn’t overpowering but pleasantly flavorful. The combination of cream cheese and mayonnaise gives that luscious creaminess you want in a dip, while the garlic powder and thyme add layers of subtle spice.

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: Vidalias are my favorite for their natural sweetness and tender texture when cooked.
Unsalted butter: Helps caramelize the onions without adding too much salt, giving you control over seasoning.
Mayonnaise: Adds smoothness and a bit of tang—key for balancing the rich cheeses.
Cream cheese: Softened for easy mixing, it’s the creamy backbone of this dip.
Garlic powder: Enhances overall savoriness without the sharpness of fresh garlic.
Dried thyme: Adds a subtle herbal note that complements the sweetness of the onions well.
Salt: Just enough to bring out all the flavors without overwhelming.
Cheddar cheese: Sharp and melty, it adds bold flavor and gooey texture.
Smoked gouda cheese: Its smoky richness elevates the dip to something a little special.
Chopped parsley (for garnish): A fresh pop of color and a mild herbaceous touch.

📝

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

This Tennessee Onion Dip Recipe is wonderfully flexible. I often switch up the cheeses or add a bit of heat when I want to spice things up. You should definitely feel free to fiddle with it and make it your own — after all, that’s where the fun is!

Variation: I sometimes swap smoked gouda for Monterey Jack or pepper jack for a little zip — it changes the flavor but keeps the creamy goodness intact.
Herb switch-up: Fresh thyme or even rosemary can be used if you want a slightly different herbal tone.
Spicy kick: Adding a pinch of cayenne or finely diced jalapeño ups the heat if that’s your jam.
Dairy-free twist: You can use vegan cream cheese and mayo alternatives to make this dip allergy-friendly.

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

Step 1: Sauté the Sweet Onions

Start by preheating your oven to 375°F. In a large oven-safe skillet, melt 2 tablespoons of unsalted butter over medium heat. Add your chopped sweet onions—Vidalia is my go-to because of its natural sweetness—and cook them gently. Patience is key here: it takes about 15 minutes for the onions to turn soft and tender, almost melting in the pan. Stir occasionally so nothing sticks or burns, which can ruin the flavor.

Step 2: Mix in the Creamy Goodness

Once the onions are beautifully soft and sweet-smelling, take the skillet off the heat. Add in 1 cup mayonnaise, 4 ounces softened cream cheese, 1 teaspoon garlic powder, 1 teaspoon dried thyme, and ½ teaspoon salt. Stir everything until it’s creamy and smooth. It’ll look a bit chunky from the onions, but don’t worry—the cheese is coming!

Step 3: Add the Cheeses and Bake

Now fold in 1 cup shredded cheddar cheese and 1 cup shredded smoked gouda gently so they’re evenly distributed. Pop the skillet right into your preheated oven for 25 minutes. You want the dip to become bubbly, with the cheese melted and slightly golden on top—this is when it’s truly irresistible.

Step 4: Garnish and Serve

Once out of the oven, sprinkle chopped parsley on top for a fresh pop of color and flavor. Serve it warm with crackers, crostini, or slices of crusty bread, and watch how fast it disappears!

Top Tip

I’ve found that the sweetness of the onions is the star here, so don’t rush the sautéing process. Also, mixing in the cheeses before baking ensures an even melt and luscious texture.

Low and Slow Onions: Cooking your onions slowly helps develop their natural sweetness without browning too quickly.
Room Temperature Cream Cheese: Softened cream cheese blends more easily — no lumps and super smooth consistency.
Use an Oven-Safe Skillet: This saves you from transferring the dip to another dish and makes cleanup easier.
Watch the Bake Time: Keep an eye after 20 minutes to avoid over-browning the cheese on top.

How to Serve Tennessee Onion Dip Recipe

Tennessee Onion Dip - Serving Suggestion

Garnishes

I like a sprinkle of freshly chopped parsley for brightness and a tiny bit of smoked paprika if I’m feeling fancy. Both add wonderful color and subtle flavor that contrast nicely with the rich dip.

Side Dishes

This dip pairs beautifully with crunchy crackers, toasted baguette slices, or even fresh veggies like crunchy celery or bell pepper strips. At parties, I also set it next to a charcuterie board—it complements meats and cheeses perfectly.

Creative Ways to Present

One fun idea is to serve the dip in a small hollowed-out bread bowl for a rustic, inviting look. Or layer it in clear glasses with additional shredded cheese on top for a whimsical twist. I’ve even stirred in some cooked, crumbled bacon for guests who want a smoky meat boost.

Make Ahead and Storage

Storing Leftovers

Place any leftover Tennessee Onion Dip in an airtight container and refrigerate for up to 2 days. I find the flavors actually deepen overnight, but it’s best enjoyed within this time frame since the cheese can start to separate the longer it sits.

Freezing

This particular dip doesn’t freeze well — the texture can get grainy and watery when thawed. I recommend making only as much as you need and enjoying it fresh whenever possible.

Reheating

To reheat, I gently warm the dip in the microwave in short bursts, stirring between each, or place it in a low oven (around 300°F) until it’s warmed through and the cheese has remelted. Avoid high heat to keep the dip creamy without drying it out.

Frequently Asked Questions:

What makes this a Tennessee Onion Dip Recipe?

The use of sweet Vidalia onions combined with Southern-inspired seasonings like thyme and smokiness from the gouda cheese give this dip a distinctive Tennessee flavor. It’s a comforting, savory recipe rooted in the South’s love for bold yet approachable dips.

Can I make this dip ahead of time?

You can prepare the onion sauté ahead of time and store it in the fridge for a day, then assemble and bake just before serving. However, the dip is best served warm and fresh, so try to bake it right before guests arrive.

What’s the best way to serve Tennessee Onion Dip?

Serve it warm with plenty of crunchy crackers, toasted bread slices, or fresh vegetable sticks like celery and bell peppers. It’s perfect as an appetizer or party snack where everyone can dip and dig in.

Can I substitute the cheeses in this recipe?

Absolutely! While the combination of cheddar and smoked gouda is classic, feel free to experiment with other melting cheeses like Monterey Jack, mozzarella, or even a spicy pepper jack for a twist. Just be mindful of salt content and meltability.

Final Thoughts

This Tennessee Onion Dip Recipe holds a special place in my kitchen rotation because it’s just so easy and crowd-pleasing. The way those sweet onions blend with rich, melty cheeses takes a simple dip to something truly memorable. I hope you enjoy making and sharing it as much as I do — it’s like a warm hug in dip form!