Southern Sweet Onion Casserole

Bursting with creamy cheese and golden onions, this Southern Sweet Onion Casserole transforms skeptics into believers with its irresistible flavor combination.

Why You’ll Love This Southern Sweet Onion Casserole

Why do some recipes just seem to bring everyone to the table with keen anticipation?

This sweet onion casserole is definitely one of those dishes. I’ve watched it disappear at countless family gatherings, with folks scraping the dish clean for those last caramelized bits.

The magic happens when those Vidalia onions transform from sharp to mellow-sweet in the oven.

The creamy, cheesy filling cradles each tender onion slice, while that buttery cracker topping provides the perfect contrast.

It’s comfort food with surprising elegance, familiar yet special enough for company. Trust me, even the onion-skeptics come back for seconds.

What Ingredients are in Southern Sweet Onion Casserole?

The heart and soul of this casserole are the sweet onions, preferably Vidalias, which melt into a gorgeous caramelized base that’ll make your kitchen smell absolutely heavenly.

This Southern classic combines those tender onions with creamy, cheesy elements and a crispy topping that makes every bite a perfect balance of textures. I’m always amazed at how these simple ingredients transform into something so much greater than the sum of their parts.

  • 4 large sweet onions (Vidalias are ideal), thinly sliced
  • 4 tablespoons halal butter, plus 2 tablespoons melted for topping
  • 1 teaspoon salt
  • ½ teaspoon black pepper
  • 1 teaspoon sugar (optional, enhances the natural sweetness)
  • 1 cup shredded sharp cheddar cheese
  • ½ cup shredded mozzarella cheese
  • 1 cup sour cream
  • 2 large eggs, lightly beaten
  • 1 cup crushed halal butter crackers

When shopping for this recipe, the quality of your onions matters tremendously.

Look for firm, heavy Vidalia onions without soft spots or sprouting. Can’t find Vidalias? Other sweet onion varieties like Walla Walla or Texas Sweet will work beautifully too.

The halal butter and crackers make this recipe accessible for those with dietary restrictions, but you can certainly substitute with your preferred brands if halal isn’t a concern for your family.

And while the sugar is technically optional, that tiny teaspoon really does help to bring out the natural sweetness of the onions, especially if yours aren’t at peak ripeness.

How to Make This Southern Sweet Onion Casserole

Southern Sweet Onion Casserole variations

Start by preheating your oven to 350°F (175°C) and getting ready to transform those humble onions into something magical. In a large skillet, melt 4 tablespoons of halal butter over medium heat. Add those 4 large, thinly sliced sweet onions to the melted butter along with 1 teaspoon of salt, ½ teaspoon of black pepper, and that optional (but highly recommended) 1 teaspoon of sugar.

Now comes the patience part—cook those beautiful onions until they’re soft and taking on a light golden hue, which takes about 15 minutes. I find myself hovering over the pan, giving them a gentle stir every few minutes, watching as they slowly transform from sharp and pungent to mellow and sweet.

Once your onions have reached that perfect caramelized state, remove the skillet from the heat. It’s time to create that creamy, dreamy filling by stirring in 1 cup of sour cream and 2 lightly beaten eggs until everything is smooth and incorporated. Then gently fold in ½ cup of shredded sharp cheddar and all of your ½ cup of mozzarella cheese.

Can you imagine how comforting this mixture already smells? Transfer this glorious onion mixture into a greased 9×13-inch baking dish, spreading it evenly. Sprinkle the remaining ½ cup of cheddar cheese over the top for that perfect golden crust we’re aiming for.

For the finishing touch, mix 1 cup of crushed halal butter crackers with 2 tablespoons of melted halal butter in a small bowl until the crumbs are evenly moistened. This crispy topping is what gives our casserole that irresistible textural contrast—soft, creamy filling below and golden, buttery crunch above.

Sprinkle this mixture over the cheese layer and pop the whole beautiful creation into your preheated oven. The recipe doesn’t specify the exact baking time, but typically, you’ll want to bake it for about 25-30 minutes, or until the top is golden brown and the edges are bubbling.

Let it rest for about 5 minutes before serving, which gives everything a chance to settle and makes serving much easier.

Southern Sweet Onion Casserole Substitutions and Variations

Several wonderful substitutions can transform this Southern Sweet Onion Casserole to accommodate different dietary needs or simply match what’s already in your pantry.

Don’t have Vidalia onions? Any sweet onion variety works beautifully. I’ve used Spanish onions in a pinch, and while slightly stronger, they caramelize just as nicely.

For dairy-free versions, plant-based butter, vegan cheese, and coconut cream can replace traditional dairy. Gluten-free crackers make an excellent topping alternative.

Sometimes I add diced bacon for smokiness, or mix in sautéed mushrooms for an earthy twist.

Love heat? A dash of cayenne or diced jalapeños brings unexpected zip to this comforting classic.

What to Serve with Southern Sweet Onion Casserole

Pairing the right dishes with this Southern Sweet Onion Casserole can elevate your entire meal from simple to spectacular. I love serving this rich, cheesy side with grilled or roasted meats—especially a juicy steak or herb-crusted chicken.

For a true Southern feast, why not add some smoked brisket, collard greens, or black-eyed peas? The sweetness of the onions balances beautifully with smoky or spicy flavors.

A simple green salad with vinaigrette cuts through the casserole’s creaminess, providing welcome contrast. Trust me, your guests will be scraping their plates clean.

Busy weeknight? This casserole paired with rotisserie chicken is dinner solved.

Final Thoughts

While I’ve made countless Southern dishes over the years, this Sweet Onion Casserole remains one of my absolute favorites for both family dinners and holiday gatherings.

The way those Vidalia onions transform into something so creamy and comforting never fails to impress even the most stubborn onion skeptics at my table.

I love how versatile it is, too—perfect alongside anything from fried chicken to holiday ham.

The combination of sharp cheddar and that buttery cracker topping? Simply irresistible. Trust me, you’ll want to save this recipe for those moments when ordinary side dishes just won’t do.

Southern Sweet Onion Casserole

No ratings yet
A comforting Southern casserole featuring tender, caramelized Vidalia onions in a creamy, cheesy sauce, topped with crispy buttery crackers. This elegant side dish transforms humble onions into a crowd-pleasing favorite that disappears at family gatherings.
Prep Time 20 minutes
Cook Time 45 minutes
Total Time 1 hour 5 minutes
Servings: 8 servings
Course: Side Dish
Cuisine: American, Southern

Ingredients
  

  • 4 large sweet onions (Vidalia preferred) thinly sliced
  • 6 tablespoons halal butter divided (4 tbsp for cooking, 2 tbsp melted for topping)
  • 1 teaspoon salt
  • ½ teaspoon black pepper
  • 1 teaspoon sugar optional
  • 1 cup sharp cheddar cheese shredded
  • ½ cup mozzarella cheese shredded
  • 1 cup sour cream
  • 2 large eggs lightly beaten
  • 1 cup halal butter crackers crushed

Equipment

  • Large skillet
  • 9x13-inch baking dish
  • Mixing bowls

Method
 

  1. Preheat oven to 350°F (175°C).
  2. In a large skillet, melt 4 tablespoons of butter over medium heat.
  3. Add sliced onions, salt, pepper, and sugar (if using). Cook until soft and light golden, about 15 minutes, stirring occasionally.
  4. Remove from heat and stir in sour cream and beaten eggs until smooth.
  5. Fold in ½ cup cheddar cheese and all of the mozzarella cheese.
  6. Transfer mixture to a greased 9x13-inch baking dish and spread evenly.
  7. Sprinkle remaining ½ cup cheddar cheese over the top.
  8. Mix crushed crackers with 2 tablespoons melted butter and sprinkle over the cheese layer.
  9. Bake for 25-30 minutes, or until top is golden brown and edges are bubbling.
  10. Let rest for 5 minutes before serving.

Notes

Choose firm, heavy Vidalia onions without soft spots for best results. Other sweet onion varieties like Walla Walla or Texas Sweet can be substituted. For dietary variations, you can use plant-based butter, vegan cheese, and coconut cream for dairy-free versions, or gluten-free crackers for the topping. The sugar is optional but helps enhance the natural sweetness of the onions.

Tried this recipe?

Let us know how it was!