Hot Caramelized Onion Dip with Bacon and Gruyere is the ultimate onion dip! The flavor of the sweet caramelized onions covered in so much rich, creamy, cheesy goodness makes this dip the hit of every party!

Sweet onion, bacon, gooey cheese all mixed in sour cream and mayo. You can’t go wrong with that. This was one of the first dip recipes I published on Spicy Southern Kitchen way back in 2013 and it is the most popular. I love a good onion dip like this Vidalia Onion Dip or Pan-Fried Onion Dip, but this Hot Caramelized Onion Dip with Bacon and Gruyere is my very favorite.
It’s rich, creamy, and flavorful and sure to be a hit at your next party. Cook the dip in a small cast iron skillet to get it extra golden and bubbly.

How To Make
(More detailed instructions in recipe card below.)
- Cook bacon and set it aside.
- Add onions, sugar, and salt to the bacon grease and cook until the onions are caramelized.
- Add sherry and cook 1 minute. Stir in thyme and TABASCO.
- Mix together sour cream and mayo. Add crumbled bacon, cheese, onions, and black pepper. Transfer to baking dish.
- Bake for 20 minutes.
How To Serve
Serve with baguette, apple slices, or fritos. Try serving leftovers (if there are any!) over a baked potato.
Recipe Tips
Be sure to cook the onions low and slow. You don’t want them to burn.
Gruyere can be a little pricy but it’s flavor is vastly superior to regular swiss cheese. If needed, you can substitute swiss cheese.

Make It Spicy
If you want to make this dip spicy, add a quarter teaspoon of crushed red pepper flakes in addition to the TABASCO Sauce.
Storage
Leftovers can be kept in an airtight container in the refrigerator for 4 days.

More Dip Recipes
- Lasagna Dip
- Spinach Artichoke Dip
- Vidalia Onion Dip
- Hot Corn Dip with Jalapenos
- Hot Bacon and Swiss Dip
- Mississippi Sin Dip
- Neiman Marcus Dip
Hot Caramelized Onion Dip with Bacon and Gruyere

Ingredients
- 4 bacon strips
- 2 sweet onions, halved and thinly sliced
- 1/4 teaspoon sugar
- 1/4 teaspoon sea salt
- 1 tablespoon dry sherry
- 1/4 teaspoon tabasco
- 1/2 teaspoon chopped fresh thyme
- 1 cup shredded Gruyere Cheese
- 1/2 cup sour cream
- 1/2 cup mayo
- 1/4 teaspoon freshly, ground black pepper
Instructions
- Preheat oven to 400 degrees.
- Cook bacon in a large nonstick skillet. Remove to a paper towel lined plate to cool. Crumble.
- Add onions, sugar, and salt to bacon fat in the skillet and cook over medium-high heat for about 5 minutes. Reduce heat to medium and cook, stirring often, until onions turn a deep golden brown color. This can take as long as 20 minutes. If onions start to burn, turn heat down to medium-low.
- Add sherry and cook 1 minute. Stir in thyme and tabasco. Remove from heat.
- Mix together sour cream and mayo in a medium bowl. Add crumbled bacon, cheese, onion mixture, and black pepper. Mix together well and transfer to a 2-cup baking dish.
- Bake 20 minutes, or until bubbly and golden brown on top.
Video
Notes
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.
Recipe Source: adapted from Coastal Living
Disclosure: This post contains affiliate links.

















Why does the recipe state to use a large non stick skillet and the video and photos show cast iron?
Makes me think this is not a valid recipeโฆโฆ looks really good but this is a huge red flag
It says to cook the bacon in a nonstick skillet (a cast iron pan can be used instead) and then transfer to a baking dish. Since a cast iron pan can go in the oven, it can be substituted for the baking dish.