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Caramelized Onion Potato Salad

Caramelized Onion Potato Salad- this creamy potato salad is full of crumbled bacon and sweet caramelized onions. It makes a great side dish for burgers, grilled chicken, steak, or barbecue.

Caramelized Onion Potato Salad topped with crumbled bacon in a serving bowl.

Caramelized Onion

I love the sweetness of caramelized onions. It takes a good 20 to 30 minutes to get onions nice and caramelized. You want the heat fairly low and be sure to stir them frequently so they don’t burn.

What Type Of Onion To Use?

I like to use sweet onion or yellow onion for this recipe, but you can use white onion or red onion.

Creamy Dressing

A combination of mayonnaise and sour cream makes a really creamy base for the dressing and the sour cream gives the potato salad a little tang. You can use all mayo if you prefer.

Potato Salad in a serving bowl.

Type of Potato To Use

I use red potatoes for this recipe, but russet potatoes or Yukon Gold potatoes can be used instead.

Add Some Spice

If you want to spice up your potato salad, add 1/4 to 1/2 teaspoon of cayenne pepper.

Make Ahead and Storage

Leftovers will keep for 3 days in an airtight conatiner in the refrigerator. Should be made at least 1 hour ahead of time so the flavors have a chance to blend.

Recipe Tip

Make sure the onion slices aren’t too long or it makes the potato salad difficult to eat. You can roughly chop the slices.

Caramelized Onion Potato Salad in serving bowl.

More Potato Salad Recipes

Caramelized Onion Potato Salad

Caramelized Onion Potato Salad- this creamy potato salad is full of crumbled bacon and sweet caramelized onions.
PREP: 10 minutes
COOK: 30 minutes


  • 1 tablespoon butter
  • 1 tablespoon vegetable oil
  • 2 medium yellow or sweet onions, thinly sliced
  • 3 pounds small red potatoes
  • 1/2 cup mayonnaise
  • 1/2 cup sour cream
  • 1 tablespoon Dijon mustard
  • 2 teaspoons apple cider vinegar
  • 1/2 teaspoon salt
  • 1/4 to 1/2 teaspoon black pepper
  • 6 slices bacon, cooked and crumbled
  • 1 tablespoon chopped fresh parsley


  • Place a large nonstick skillet over medium-low heat. Add butter and vegetable oil. When hot, add the onion.
    Cook stirring occasionally for 25 to 30 minutes.
    Season with salt and pepper.
  • Cut the potatoes in quarters and place in a large pot. Add water to cover by 1-inch. Bring to a boil and then add 1 tablespoon of salt.
    Reduce heat to a simmer and simmer for 15 to 20 minutes or until tender. Drain.
  • In a large bowl, stir together mayonnaise, sour cream, mustard, vinegar, salt, and pepper.
  • Add onions and potatoes and mix well. Sprinkle bacon and parsley on top.
  • Refrigerate for at least 2 hours before serving.


Boil the potatoes while the onions cook to save time.
Course: Side Dish
Cuisine: Southern
Keyword: potato salad

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