French Onion Squash Casserole Recipe – hands down the BEST squash casserole! Even our squash haters loved this casserole. Yellow squash, onion, cream of mushroom soup, french onion dip, cheddar cheese, garlic powder, and french fried onions. It’s a symphony of textures and flavors that’ll steal the spotlight at any meal. Whether you’re hosting a holiday gathering, potluck, or simply want to elevate your family dinner, this casserole is a must-try.
Preheat oven to 350ºF. Lightly spray a 9x9-inch baking dish with cooking spray.
Heat olive oil in a large skillet over medium heat. Add onion and yellow squash to the pan and cook until the vegetables are tender. Drain any excess liquid from the squash mixture in a colander.
Combine squash mixture, cream of mushroom soup, French onion dip, garlic powder, 1 cup shredded cheddar cheese, and 1/2 of the French fried onions. Season with salt and black pepper.
Spread squash mixture into prepared pan.
Bake for 25 minutes. Remove from oven, top with remaining cheese and onions. Bake an additional 5 minutes.
Notes:
Make sure to use sour cream French onion dip such as Dean's, Great Value, Barber's, Heluva Good Dip, or Kraft.
If you can't find the sour cream dip, you can substitute sour cream and a few tablespoons of onion soup mix.
I suggest using Unsalted Cream of Mushroom Soup in this dish to control the sodium.