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 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 just something unbelievably comforting about warm, cheesy, oniony dips that bring everyone together. This Tennessee Onion Dip Recipe captures that cozy feeling perfectly, with sweet onions and smoky gouda mixed into a creamy, baked dip you’ll want to serve again and again.

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 still remember the first time I whipped up this Tennessee Onion Dip Recipe for a family gathering — it disappeared so fast, everyone kept asking for the recipe. It’s rich, tangy, and just a little smoky, making it stand out from your typical onion dip.

Perfectly caramelized onions: They lend a natural sweetness that keeps this dip balanced and addictive.
Cheese combo magic: Using both cheddar and smoked gouda adds complexity without overpowering the dip.
Simple prep, big payoff: You can make this dip in one skillet, so cleanup is a breeze.
Great for any occasion: Whether it’s game day or a cozy night in, it’s always a crowd-pleaser.

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 this Tennessee Onion Dip Recipe plays an important role, from the sweetness of the Vidalia onions to the luxurious blend of cheeses. Here are a few tips to get the best results every time.

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 always use Vidalias for their mild sweetness; they caramelize beautifully and give the dip its signature flavor.
Unsalted butter: It keeps control over the salt level, letting you adjust seasoning just right.
Mayonnaise: Adds creaminess and subtle tang without overpowering the other flavors.
Cream cheese: Softened cream cheese gives that rich, dreamy texture you’re aiming for.
Garlic powder: Provides that savory kick without fresh garlic’s sharpness.
Dried thyme: Offers an earthy, herbal depth that balances out the richness.
Salt: Enhances and pulls all the flavors together—don’t skip it!
Cheddar cheese: Sharpness and meltability make cheddar a must-have in this mix.
Smoked gouda cheese: Adds smoky, creamy notes that elevate the dip beyond ordinary.
Chopped parsley: Just enough freshness and a pop of color for 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

This Tennessee Onion Dip Recipe is pretty fantastic as is, but I love playing around with it to suit different moods or gatherings. Once you get the basics down, personalize it to your heart’s content.

Variation: On one lazy Saturday, I swapped smoked gouda for pepper jack to spice things up — it was a hit for those who like a little heat.
Make it vegetarian-friendly: Double-check your mayo and cheese labels to ensure they’re free of animal enzymes if that matters to you.
Add fresh herbs: Mixing in chopped chives or rosemary ups the freshness factor and gives a lovely aroma right when you serve it.
Skip the oven: If you’re in a hurry, warm it gently on the stovetop until bubbly, but do watch closely to avoid burning.

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

Step 1: Sauté the Onions to Sweet Perfection

Start by preheating your oven to 375°F. In a large oven-safe skillet, melt 2 tablespoons of unsalted butter over medium heat. Toss in the chopped sweet onions — I use about 2 large Vidalia ones — and cook, stirring occasionally, until they turn soft, tender, and golden, about 15 minutes. Don’t rush this step; the slow cooking brings out that lovely natural sweetness that’s essential to this dip.

Step 2: Mix in the Creamy Goodness

Once the onions are perfectly cooked, take the skillet off the heat. Add in 1 cup mayonnaise, 4 ounces of softened cream cheese, 1 teaspoon garlic powder, 1 teaspoon dried thyme, and ½ teaspoon salt. Stir everything together until creamy and combined. This step is where the dip comes to life — getting the textures smooth here means luscious results later.

Step 3: Add Cheese and Bake

Fold in 1 cup shredded cheddar cheese and 1 cup shredded smoked gouda cheese. The melty cheese blend is what gives the dip that irresistible, bubbly texture after baking. Pop the skillet into the oven and bake for 25 minutes, or until you see it bubbling nicely and the top turns a little golden. That oven time helps all the flavors meld together perfectly.

Step 4: Garnish and Serve

After baking, sprinkle chopped parsley on top for a fresh touch and a splash of color. Serve it warm with your favorite crackers, crostini, or slices of crusty bread. Trust me, everyone will be reaching for seconds.

Top Tip

After making the Tennessee Onion Dip Recipe several times, I’ve learned a few tricks that really help you achieve the perfect balance of flavor and texture every time.

Caramelize Slowly: Don’t rush the onions. Patience here develops sweetness and depth that you just can’t get with shortcuts.
Room Temperature Cream Cheese: Softened cream cheese blends easier, giving you a smoother dip with no lumps.
Use an Oven-Safe Skillet: It saves you from extra dishes by going straight from stovetop to oven.
Watch Baking Time: Keep an eye on the dip the last few minutes—overbaking can dry it out, and underbaking leaves it too runny.

How to Serve Tennessee Onion Dip Recipe

Tennessee Onion Dip - Serving Suggestion

Garnishes

I always top this dip with freshly chopped parsley — it adds a bit of brightness that balances the richness of the cheese and onions. Sometimes, I sprinkle a little extra smoked paprika for a subtle smoky warmth and a pop of color.

Side Dishes

This dip pairs wonderfully with crunchy kettle-cooked potato chips, toasted crostini, or even veggie sticks like celery and carrots for a lighter option. If I’m hosting a party, I like to set out a colorful platter of assorted dippers so there’s something for everyone.

Creative Ways to Present

For holiday gatherings, I sometimes serve this Tennessee Onion Dip Recipe in a hollowed-out sourdough loaf — it makes for a fun centerpiece and easy scooping. Another fan favorite is to bake it in mini ramekins for individual servings that look fancy but are super simple.

Make Ahead and Storage

Storing Leftovers

I store any leftover Tennessee Onion Dip in an airtight container in the refrigerator, and it keeps nicely for up to 2 days. Just be sure to cover it well to avoid it drying out or absorbing fridge odors. Personally, I rarely have leftovers because it goes fast!

Freezing

This Tennessee Onion Dip Recipe doesn’t freeze well because the texture changes — the cheese can separate and the onions become mushy. So, I recommend making it fresh when you can. If you’re planning ahead, prepping the onions in advance is a great option to save time.

Reheating

I reheat leftovers gently in the microwave or in a low oven (around 300°F), stirring occasionally to keep it smooth and creamy. Avoid high heat as it can cause the cheese to clump or the dip to dry out.

Frequently Asked Questions:

What type of onions are best for Tennessee Onion Dip Recipe?

Sweet onions like Vidalias are ideal because they caramelize nicely and add natural sweetness, which balances the richness of the cheeses.

Can I make Tennessee Onion Dip Recipe ahead of time?

You can prep the onions and mix the ingredients in advance, but I recommend baking and serving it fresh to keep the best texture and flavor. The dip can be refrigerated for up to 2 days if needed.

What should I serve with Tennessee Onion Dip Recipe?

This dip goes great with crackers, toasted bread, chips, or fresh vegetables. I personally love serving it with kettle-cooked potato chips and crunchy crostini for variety.

Can I substitute cheeses in Tennessee Onion Dip Recipe?

Absolutely! If you don’t have smoked gouda, try Monterey Jack or a mild Havarti for a creamy texture, and adjust seasoning to taste. The cheddar brings sharpness, but feel free to experiment with what you have.

Final Thoughts

This Tennessee Onion Dip Recipe has become one of my go-to comfort foods for gatherings and quiet nights alike. It’s cozy, flavorful, and incredibly satisfying without needing any fancy techniques. I’m confident you’ll love making (and eating!) this dip as much as I do, and once you do, it’ll be a staple at your table too.