This Trader Joe’s style Caramelized Onion Dip is a rich and sweet recipe, which is made with slow-cooked caramelized onions and a tangy sour cream base. It’s the ultimate party dip, a from-scratch version that’s way better than any store-bought tub, ready with just a little patience.
Jump to RecipeTrader Joe’s Caramelized Onion Dip Ingredients
A simple list for a deeply flavorful, from-scratch dip.
- 2 large white or yellow onions, finely diced
- 3 tbsp butter
- 16 oz sour cream
- 3-4 oz cream cheese, softened
- 1 tsp sugar
- 1 tsp soy sauce
- 1/2 tsp salt, plus more to taste
- For Garnish: 1-2 tbsp chopped green onions or chives (optional)
- For Serving: Potato chips (wavy ones are best!)
How To Make Trader Joe’s Caramelized Onion Dip
A step-by-step guide to this incredibly rich and flavorful party dip.
- Caramelize the Onions: Melt the butter in a large skillet over medium-low heat. Add the diced onions and a pinch of salt. Cook low and slow, stirring occasionally, until the onions are very soft, jammy, and a deep golden brown. This will take a while—be patient! It can take anywhere from 30 to 45 minutes.
- Combine the Creamy Base: While the onions cool slightly, combine the softened cream cheese and the sour cream in a large bowl.
- Mix the Dip: Add the cooled caramelized onions, the sugar, soy sauce, and 1/2 tsp of salt to the sour cream mixture. Mix well until everything is evenly combined.
- Chill and Serve: For the best flavor, cover the dip and let it chill in the refrigerator for at least an hour to allow the flavors to meld. Taste before serving and adjust the salt if needed. Garnish with chopped green onions or chives and serve with your favorite potato chips.

Recipe Tips
For the most flavorful, perfectly creamy caramelized onion dip.
- How to get perfectly caramelized onions? Patience is the most important ingredient! The key is low and slow heat. Don’t rush the process by turning the heat up, as the onions will burn before they have a chance to release their sugars and become sweet and jammy.
- Can I make this ahead of time? Absolutely! This dip is the perfect make-ahead appetizer. The flavor is significantly better on the second day after the onion flavor has had a chance to fully infuse the creamy base. It will keep for several days in the fridge.
- How to get a super creamy dip? Using fully softened, room temperature cream cheese is the secret to a smooth, lump-free dip. If your cream cheese is cold, it won’t mix in properly.
- Trader Joe’s Shortcuts: For a faster version, you can use a tub of Trader Joe’s pre-made caramelized onions (found in the refrigerated or frozen section) and simply stir them into the sour cream and cream cheese base.
What To Serve With Caramelized Onion Dip
The perfect dippers for this crowd-pleasing appetizer.
This iconic party dip is a guaranteed hit at any game day or gathering. It’s fantastic served with:
- Ruffled or wavy potato chips (they are the best for scooping!)
- Pretzels, pita chips, or sturdy crackers
- An assortment of fresh vegetable sticks, like carrots, celery, and bell peppers
- As a delicious spread for sandwiches or burgers
How To Store Caramelized Onion Dip
Keeping your delicious dip fresh.
- Refrigerate: Store the dip in an airtight container in the refrigerator. It will stay fresh and delicious for up to 5 days.
Trader Joe’s Caramelized Onion Dip Nutrition Facts
An estimated guide per serving.
- Calories: 284kcal
- Carbohydrates: 16g
- Protein: 3g
- Fat: 24g
Nutrition information is estimated and may vary based on ingredients and cooking methods used.
FAQs
The flavor is night and day! A packet mix uses dehydrated onion powder for a sharp, salty flavor. This from-scratch version uses slowly caramelized fresh onions, which creates a much deeper, sweeter, and more complex flavor profile.
Yes. To make this vegan, use a plant-based butter or olive oil to caramelize the onions, and substitute the sour cream and cream cheese with your favorite dairy-free alternatives.
Your heat was too high. Caramelizing onions requires a gentle, medium-low heat and patience. If they start to brown too quickly, they are frying, not caramelizing. Turn the heat down and stir more frequently.
Try More Recipes:
- Trader Joe’s Buffalo Chicken Dip Recipe
- Trader Joe’s Beef Bulgogi Recipe
- Trader Joe’s Balela Salad Recipe
Trader Joe’s Caramelized Onion Dip Recipe
Course: AppetizersCuisine: AmericanDifficulty: Easy10
servings10
minutes45
minutes284
kcalAn easy, from-scratch recipe for a rich and creamy caramelized onion dip that’s way better than the store-bought kind. Sweet, slow-cooked onions are folded into a tangy sour cream base for the ultimate party dip.
Ingredients
2 large white onions, diced
3 tbsp butter
16 oz sour cream
3-4 oz cream cheese, softened
1 tsp sugar
1 tsp soy sauce
1/2 tsp salt, plus more to taste
Garnish: Chopped green onions (optional)
Serving: Wavy potato chips
Directions
- In a large skillet over medium-low heat, melt the butter. Add the diced onions and a pinch of salt.
- Cook slowly, stirring occasionally, for 30-45 minutes, until the onions are a deep, jammy golden brown. Let them cool slightly.
- In a large bowl, combine the sour cream and the softened cream cheese.
- Stir in the cooled caramelized onions, sugar, soy sauce, and 1/2 tsp of salt. Mix well.
- Cover and chill for at least 1 hour to allow the flavors to meld.
- Taste and adjust salt if needed. Garnish with green onions and serve with potato chips.
Notes
- Patience is the most important ingredient for truly sweet and jammy caramelized onions—don’t rush the process!
- This dip is a perfect make-ahead appetizer; the flavor is even better on the second day.
- Using fully softened cream cheese is the secret to a smooth, lump-free dip.
- For a true Trader Joe’s experience, serve with their Ridge Cut Potato Chips.
