Caramelized Onion Dip with Labneh is made with caramelized onions, green onions and crispy fried onions swirled into creamy labneh. Serve this updated sour cream and onion dip recipe with a rustic loaf of bread, chips, crackers and vegetables. Try it as a spread for sandwiches and burgers, and roasted meat and vegetables. Or bake until bubbly and serve as a hot dip instead.

Onion dip
Caramelized Onion Dip with Labneh is a recipe I developed in partnership with Genuine Skagit Valley to highlight the versatility of the abundant crops grown in Washington’s gorgeous Skagit Valley.
This three onion dip recipe is made with caramelized onions, green onions and crispy fried onions using onions and garlic, labneh and spices all produced locally at Skagit Valley Farms like Schuh Farms, Boldy Grown Farms and Samish Bay Cheese.
The crispy fried onions on top add texture and a hint to the classic dip flavor. But, they’re totally optional, or feel free to use the canned crispy onions rather than making homemade fried onions.
Labneh is a double strained plain yogurt with the consistency of whipped cream cheese. Making onion dip with labneh is a great way to add a luscious cream cheese onion dip like texture and delicious flavor to what is otherwise a basic onion dip recipe. If labneh is unavailable, make cream cheese onion dip with cream cheese instead. Or feel free to make a more classic sour cream and onion dip with sour cream or Greek yogurt as a substitute for labneh.
Served cold or hot this is the perfect dip recipe for parties! And it makes a great addition to mezze and other snack spreads as well as having many other uses (see below for some great ideas to use leftover dip!).
Ingredients
- Onions – white onions, sweet onions, vidalia, onions, etc.
- Green onions
- Labneh – or use plain full fat Greek yogurt. Or a mixture of sour cream and cream cheese whipped together.
- Butter
- Thyme – fresh or dried
- Garlic
- Balsamic vinegar
- Worcestershire sauce
- Salt and black pepper
- Optional – chili oil, chili crisp or paprika, for serving
Step by step instructions
- Make homemade crispy fried onions. Heat about frying oil over medium high to about 355 degrees. Thinly slice green onions keeping whites and greens separate and carefully add whites to hot oil. Fry until browned and crispy, about 2 minutes, stirring occasionally. Once crispy place onions on paper towel lined plate to drain. Onions will continue crisping as they cool. Reserve onion oil for another use.
- Next make caramelized onions. Peel onions and thinly slice into semicircles. Add butter to a large pot over medium heat and add sliced onions and salt. Cook, stirring occasionally, until softened and just starting to brown about 12 minutes. Then add thyme, garlic, and scallions and reduce heat to medium low. Continue to cooking, stirring occasionally, until onions are caramelized and deep brown, about 35 minutes longer. Then add balsamic vinegar and Worcestershire sauce to deglaze, stirring up any browned bits on the bottom of the pan. Remove onion mixture from heat and allow to cool completely.
- Reserve ¼ cup caramelized onions for later and finely chop remaining caramelized onions. Stir labneh until smooth in a large bowl then add chopped onions and continue stirring until fully incorporated. Season to taste with coarse black pepper and salt then smooth dip over a shallow serving bowl or large plate.
- Top onion dip with reserved caramelized onions, crispy onions and sliced green onions. Optionally, add a drizzle of chili oil for spice and color contrast.
- Serve with toasted rustic bread, crackers, chips, or veggies.
- Enjoy!
How to serve
Wondering what to serve with onion dip? Use this homemade onion dip recipe like you would other dips!
Serve with a variety of potato chips, crackers, toasted bread and veggies. You can even make this a hot baked caramelized onion dip rather than a traditional cold onion dip. Simply bake until bubbly in an oven safe vessel and serve warm.
Use leftover onion dip as a dip for artichokes, a spread for crostini, a flavorful addition to mashed potatoes, a filling for jalapeno poppers, and as a coating for salmon and other baked fish. Or use as a filling for savory pies and tarts, french onion sandwiches, burgers, and wraps. Or slather on chicken to make French onion chicken bake. There are so many uses for french onion dip!
Yield
This dip recipe yields about 3 cups. Typically a serving of dip is about ⅓ cup. So this makes enough dip for about 10-12 servings.
How to store
Store Homemade Caramelized Onion Dip refrigerated, tightly covered, up to 5 days in advance, topping with crispy onions just before serving.
Crispy fried onions can be stored, tightly covered at room temperature for up to 5 days, refrigerated for up to 2 weeks, or frozen for up to 6 months. And the reserved onion oil can be stored at room temperature for up to a week or refrigerated for a month and used as a salad dressing, frying oil, pizza oil, etc.
📖 Recipe
Ingredients
- 3 large white sweet, vidalia, large cipollini, etc.
- 2 bunches green onions
- 2 tablespoons butter
- 1 teaspoons fresh thyme or ½ teaspoon dried
- 1 clove garlic
- 1 tablespoon balsamic vinegar
- 1 teaspoon Worcestershire sauce
- 2 cups labneh 16 ounces
- ½ teaspoon salt
- ½ teaspoon coarse black pepper to taste
- chili oil, chili crisp or paprika optional, for serving
Instructions
- Make crispy fried onions. Thinly slice green onions and keep whites and greens separated. Heat about 1 inch of oil to medium high heat in a large frying pan or stockpot until around 355 degrees Fahrenheit for frying. Then carefully add scallion whites to hot oil and stir slightly to break up the pieces. Fry onions until medium brown and crispy then remove, using a slotted spoon, placing on a paper towel lined plate to drain. Allow to cool to continue crisping. Reserve onion oil for another use.
- Make caramelized onions. Peel and thinly slice onions into semicircles. Return pot to medium heat. Add butter, remaining sliced onions, and ½ teaspoon salt. Cook, stirring occasionally until softened and just starting to brown, or ‘blonde’ in color, about 12 minutes. Then reduce heat to medium low, add thyme, garlic, and scallion whites. Continue cooking, stirring occasionally, until onions are caramelized and deep brown, about 35 minutes longer. Then add balsamic vinegar and Worcestershire sauce to deglaze, stirring up any browned bit on the bottom of the pan. Remove caramelized onions from heat and allow to cool completely.
- Reserve several tablespoons of caramelized onions to later garnish the dip and finely chop remaining onions.
- In a large bowl stir labneh to loosen then stir in chopped onions. Season to taste with salt and coarse black pepper then smooth labneh mixture over a shallow bowl or plate. Top with reserved caramelized onions, crispy onions, and scallion greens. Add a drizzle of chili oil or sprinkle of paprika.
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