Caramelized Onion and Bacon Dip

This Caramelized Onion & Bacon Dip is rich, creamy and oh so delicious! Serve it warm or cold, with bread or chips for an appetizer everyone will love! And, it’s a simple appetizer that can be made in advance for easy entertaining.

The flavor is sweet and rich and complex… without any of the pungent notes of raw onion. If you’ve never made caramelized onions, then you’re in for a really special treat!

This recipe includes a pretty simple list of ingredients. The beautiful caramelized onions are blended with fresh Challenge Cream Cheese, sour cream, freshly cooked bacon bits and then just some salt and pepper and a bit of balsamic to add one more subtle layer of flavor.

There are lots of delicious ways to enjoy this dip!

  • For a more formal presentation, toast baguette slices and spread with the dip, then top with fresh tomato, fresh basil, or a few extra bacon bits would be great too!
  • For more casual serving, simply add the dip to a bowl and serve with sliced baguette, wavy potato chips or pita chips. Feel free to dip fresh veggies in the dip as well!
  • Additionally, this dip would be delicious in place of mayo on a hamburger bun, or in a sandwich wrap (try with fresh lettuce, tomato and grilled chicken).

Caramelized Onion Dip

Caramelized Onion Dip

Caramelized Onion and Bacon Dip

Caramelized Onion

  • 1 large yellow onion
  • 2 Tablespoons Challenge Butter
  • 1 tablespoon oil such as light olive oil
  • ¼ teaspoon salt

Creamy Dip

  • 3 slices cooked bacon
  • 8 ounces Challenge Cream Cheese, 1 block, at room temperature
  • ½ cup sour cream
  • 1 teaspoon balsamic vinegar
  • ¼ teaspoon salt in addition to salt listed with onions
  • ¼ teaspoon black pepper


  • 1
    Slice onion into thick rings (or half rings), and separate into individual pieces. Place onion slices into a large sauté pan, along with 2 tablespoons butter and 1 tablespoon oil.
  • 2
    Cook on medium-high heat, stirring as needed. After 10 minutes, reduce heat to low and continue cooking, stirring only as needed. You want the onions to develop a nice brown color, but do not allow them to burn. If needed, add just a bit of water to the pan if the pan is dry. The onions are fully caramelized when they have cooked down and are dark brown. The process generally takes about 30 minutes total. Remove from heat and allow to fully cool. When cooled, chop into small pieces.
  • 3
    While the onions are cooking, chop your bacon.
  • 4
    In a large bowl, beat cream cheese (with an electric hand mixer, or stand mixer) until fully smooth.
  • 5
    Add sour cream and blend. Add chopped caramelized onion and blend. Add bacon, balsamic, salt and pepper and blend until all ingredients are well incorporated.
  • 6
    Spread dip onto plain or toasted baguette slices, or serve with thick potato chips or pita chips. The dip may be enjoyed warm or cold.

Recipe By

Glorious Treats

Glory Albin is a wife, mother, and also a few other things... a baker, crafter, photographer, floral designer, and an obsessive party planner. She loves color, design, and sweets... and really loves bringing all three of those things together! Visit her blog at