What do you get when you pair caramelized onions with bacon and cheese? Besides the three best food anyone could have, these 3 ingredients are the stars of this Baked Caramelized Onion and Bacon Dip.
This is creamy, cheesy, and full of bold flavors — its insane and essential for every spread!!
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The ingredients:
- sweet onion
- bacon or prosciutto
- red wine
- sugar
- sour cream
- nonfat plain greek yogurt
- fontina cheese
- Gruyere cheese
- salt and pepper
- red pepper flakes
- fresh thyme
What dish should I use to bake this dish?
I like to bake this dip in a cast iron skillet because the skillet absorbs all the heat and helps to keep the dip warmer for longer. I think a 6″ or 8″ skillet works best. I used a a 6″ skillet for this photo. Here are some of my favorite cast iron skillets:
If you’d prefer to use a baking dish, I’d recommend a shallow baking dish such as a this one.

What should I serve with this dip?
This dip is full of flavor so I would recommend a neutral cracker. I like to use classic water crackers or even toasted baguette slices to add some extra textures to each and every bite.
Does this dip reheat well?
Yes, but I don’t know if you’ll have much left to reheat. I’m telling you, this dip is delicious.
Reheat in a 350 degree oven for 20-25 minutes until cheese begins to bubble. Mmmmm!

Everything you need to know about making caramelized onions:
Repeat after me, sauteed onions are not the same as caramelized onions!!
Caramelized onions are a labor of love. It is a slow, yet simple process to make them, where you cook down the onions until the natural sugars from in the onions caramelize, hence the name. This process draws out the most delicious, complex flavors. I promise you the flavors are worth the time it takes to caramelize. Let me break down the process for making the perfect caramelized onions:
- Onions shrink down a ton when they cook so don’t underestimate how many you use. Always use more than you think you need.
- Use both butter and olive oil to cook down. I used my nonstick The Always Pan. (You can read more about that pan in this post.)
- Start off by cooking the onions on medium heat until the soften and become translucent. This only takes about 5 minutes.
- Add a pinch of granulated sugar and keep cooking, stirring often. After about 15-20 minutes the onions will start to develop a nice golden brown color once they lose most of their moisture.
- Turn down the heat to a med-low and continue cooking for another 15-20 minutes until the onions start to give off a nutty smell. This is when the sugars begin to caramelize.
- The most important part is to deglaze the pan!! I like to use whatever I’m drinking… in this case it was Avaline Red Wine. This pulls all of the extra flavors from the bottom of the pan back into the onions. Then pour yourself a glass of wine while you wait!
Caramelized onions can be made a day in advance and stored in the fridge until you’re ready to assemble and bake the dip.

I hope you enjoy this dip! It is insanely delicious and one that your guests will definitely love.

Baked Caramelized Onion and Bacon Dip
Ingredients
- 2 large sweet onion chopped
- 1 tbsp olive oil
- 1 tbsp butter
- pinch granulated sugar
- 2 tbsp red wine
- 4 strips bacon cooked
- ½ cup Fontina cheese shredded
- ½ cup Gruyere cheese shredded
- ⅓ cup light sour cream
- ½ cup non-fat plain Greek yogurt
- pinch salt and pepper
- 1-2 tsp red pepper flakes optional
- 1-2 tsp fresh thyme, plus more for garnish
Instructions
- Make caramelized onions. Peel and chop onions. Melt butter and olive oil in skillet over medium heat. Cook onions for 5 minutes until they soften and become translucent. Add a pinch of granulated sugar and keep cooking, stirring often. After about 15-20 minutes the onions will start to develop a nice golden brown color once they lose most of their moisture. Turn down the heat to a med-low and continue cooking for another 15-20 minutes until the onions start to give off a nutty aroma. Deglaze pan with red wine and cook for another 2-3 minutes until wine reduces.
- While the onions are cooking, make the bacon. Crumble and set aside.
- In a medium bowl, mix together shredded cheeses, sour cream, greek yogurt, salt/pepper, red pepper flakes, and thyme. Add caramelized onions and stir until combined.
- Transfer to a cast iron skillet or shallow baking dish. Bake for 20-25 minutes or until cheese is melted and the top of the dip is golden brown.
- Remove from oven and garnish with fresh thyme.
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I’d love to hear from you once you get the chance to make this recipe. Leave a comment below with your review or any modifications you made! And don’t forget to tag @rightbackspatula on Instagram if you take any pictures!
Simple and fabulous recipe! Will definitely make it again!