This creamy, savory Trader Joes Caramelized Onion Dip Recipe is made with slow-cooked yellow onions, sour cream, and cream cheese, ready in 55 minutes. Watching the sharp onions melt down into a sweet, jammy consistency before folding them into the rich base is incredibly satisfying. I love making this copycat version whenever I host a weekend gathering.
Better Than Store-Bought
I used to buy tubs of this dip from Trader Joe’s every time I went shopping. The convenience was great, but I soon realized the homemade version tastes so much fresher.
My biggest mistake early on was rushing the onions over high heat, which just burned them. I learned that slow and steady heat is the only way to get that authentic, deep sweetness.
Jump to RecipeTrader Joes Caramelized Onion Dip Recipe Ingredients
- 2 large yellow onions, finely chopped
- 2 tbsp unsalted butter
- 1 tbsp olive oil
- 8 oz cream cheese, softened
- 1/2 cup sour cream
- 1/4 cup mayonnaise
- 1/2 tsp garlic powder
- 1/2 tsp salt
- 1/4 tsp black pepper
- 1 tsp balsamic vinegar

How To Make Trader Joes Caramelized Onion Dip Recipe
- Sauté the onions: Heat the butter and olive oil in a large skillet over medium-low heat. Add the chopped onions and cook slowly for 40-45 minutes until deep brown and jammy, stirring occasionally.
- Deglaze the pan: Stir in the balsamic vinegar, scraping up any browned bits from the bottom of the pan. Remove from heat and let the onions cool completely.
- Mix the base: In a medium bowl, combine the softened cream cheese, sour cream, mayonnaise, garlic powder, salt, and black pepper. Stir until completely smooth.
- Fold it together: Add the cooled caramelized onions to the creamy mixture and fold gently until evenly distributed.
- Chill and serve: Cover the bowl and refrigerate for at least one hour to let the flavors meld before serving.

Recipe Tips
- Don’t rush the onions: Cooking them low and slow is crucial for drawing out their natural sugars without burning.
- Soften the cream cheese: Using room temperature cream cheese prevents lumps in your dip.
- Cool the onions completely: Adding hot onions to the dairy will cause the mixture to separate and become greasy.
What To Serve With Caramelized Onion Dip
Thick-cut potato chips are the classic choice for this rich dip. It also pairs wonderfully with crisp vegetable sticks, pretzel crisps, or toasted baguette slices.

How To Store
Keep the dip in an airtight container in the refrigerator for up to 4 days. Do not freeze this dip, as the dairy base will separate and become watery when thawed.
FAQs
Can I use red onions instead of yellow?
Yellow onions are best for their balance of sweetness and sharpness. Red onions work but will change the color and yield a slightly sweeter flavor.
Why did my onions burn?
Your heat was likely too high or you didn’t stir often enough. Keep the stove on medium-low and check on them frequently.
Can I make this ahead of time?
Yes, this dip actually tastes better the next day. The flavors need time to blend properly in the fridge overnight.
Nutrition
- Calories: 180 kcal
- Total Fat: 16 g
- Saturated Fat: 8 g
- Cholesterol: 35 mg
- Sodium: 210 mg
- Total Carbohydrate: 7 g
- Protein: 2 g
Try More Recipes:
- Trader Joes Chili Onion Crunch Recipe
- Trader Joes Crunchy Chili Onion Recipe
- Trader Joe’s Holiday Hash Recipe
Trader Joes Caramelized Onion Dip Recipe
8
servings10
minutes45
minutes55
minutesCreamy, savory Trader Joes Caramelized Onion Dip Recipe packed with jammy, slow-cooked onions, cream cheese, and sour cream. Ready in 55 minutes, this easy homemade batch is a reliable crowd-pleaser for any casual gathering.
Ingredients
2 large yellow onions, finely chopped
2 tbsp unsalted butter
1 tbsp olive oil
8 oz cream cheese, softened
1/2 cup sour cream
1/4 cup mayonnaise
1/2 tsp garlic powder
1/2 tsp salt
1/4 tsp black pepper
1 tsp balsamic vinegar
Directions
- 1. Sauté the onions: Heat the butter and olive oil in a large skillet over medium-low heat. Add the chopped onions and cook slowly for 40-45 minutes until deep brown and jammy, stirring occasionally.
- 2. Deglaze the pan: Stir in the balsamic vinegar, scraping up any browned bits from the bottom of the pan. Remove from heat and let the onions cool completely.
- 3. Mix the base: In a medium bowl, combine the softened cream cheese, sour cream, mayonnaise, garlic powder, salt, and black pepper. Stir until completely smooth.
- 4. Fold it together: Add the cooled caramelized onions to the creamy mixture and fold gently until evenly distributed.
- 5. Chill and serve: Cover the bowl and refrigerate for at least one hour to let the flavors meld before serving.
