Southern Squash Casserole is a warm, creamy, and cheesy side dish beloved across the American South. Made with tender yellow squash, sautéed onions, eggs, and cheese, it’s layered with a buttery cracker topping that turns golden and crispy in the oven. This comforting casserole brings people together at potlucks, holidays, and Sunday dinners, capturing the essence of Southern home cooking.

What makes this dish stand out is its perfect balance of rich flavors and satisfying textures. Whether it’s served alongside fried chicken, roast turkey, or baked ham, this versatile side dish always holds its own.

Loved for its simplicity and adaptability, Southern squash casserole is an essential addition to any warm-weather meal. Whether you’re introducing it to your table for the first time or honoring a family tradition, this dish is all about down-home comfort done right.

A Brief History of Southern Squash Casserole

Like many iconic dishes in Southern cuisine, this casserole has humble beginnings. It originated in farm kitchens where home cooks used fresh summer squash from backyard gardens or local markets. Over time, the dish evolved to include modern pantry staples like Ritz crackers, sour cream, and shredded cheese.

Its rise in popularity at church potlucks, holiday feasts, and family reunions came naturally—Southern squash casserole is affordable, adaptable, and crowd-pleasing. Today, it remains a go-to side dish that unites generations around the table.

Key Ingredients and Substitutes

The magic of Southern squash casserole lies in the simplicity of its ingredients. Each one contributes to the dish’s creamy, cheesy texture and savory flavor.

Essential Ingredients:

Yellow summer squash (5–6 cups sliced)
Yellow onion (chopped)
Large eggs
Shredded cheddar cheese
Sour cream or mayonnaise
Ritz cracker topping (or breadcrumbs)
Butter, salt, and pepper

Optional Add-ins:

Cream of mushroom soup (for extra creaminess)
Cooked bacon or diced ham (for a smoky, meaty variation)
Parmesan cheese, garlic powder, or paprika

Dietary Swaps:

Gluten-Free: Use gluten-free breadcrumbs or crackers
Dairy-Free: Use vegan cheese and dairy-free sour cream or mayo
Low-Carb: Skip the topping and use almond flour or crushed pork rinds

These substitutions help transform this traditional dish into a modern option for various diets—without sacrificing the cheesy squash bake flavor we all love.

Step-by-Step Preparation Instructions

Perfecting this casserole comes down to balancing moisture, creaminess, and crispiness. Follow these easy steps to create a foolproof Southern squash casserole.

1. Sauté the Squash and Onion

Slice yellow squash into 1/4-inch rounds and finely chop one yellow onion.
In a large skillet over medium heat, add a small amount of oil or butter.
Cook the squash and onion together for about 8–10 minutes until they are soft but not mushy.
Important: Drain the mixture in a colander and press with a spatula to remove excess moisture. This prevents a watery casserole later.

2. Mix the Filling

In a mixing bowl, whisk together:
- 2 large eggs
- 1/2 cup sour cream or mayonnaise
- 1 cup shredded cheddar cheese
- Salt, pepper, and any optional seasonings (like garlic powder or paprika)
Fold in the sautéed squash and onion mixture once it’s cooled slightly.

3. Assemble the Casserole

Lightly grease a 9×13-inch baking dish.
Pour the squash mixture evenly into the pan.
Top with:
- 1 cup of crushed Ritz crackers or Panko breadcrumbs
- 2 tablespoons melted butter
- Additional shredded cheese (optional)

4. Bake It

Preheat the oven to 350°F (175°C).
Bake uncovered for 30–35 minutes until the top is golden and the casserole is bubbling around the edges.

5. Texture & Flavor Tips

Want extra crunch? Sprinkle a bit more buttered cracker topping halfway through baking.
Prefer it creamier? Add more sour cream or a small amount of condensed soup to the filling.
Make it spicy? Toss in chopped jalapeños or red pepper flakes for heat.

Why This Recipe Works

This recipe succeeds because it layers flavors and textures in a way that feels indulgent yet balanced. The sweetness of the squash is enhanced by the savory cheese and onion, while the buttery cracker topping adds a satisfying crunch.

What you get is a casserole that’s:

Creamy on the inside
Golden and crispy on top
Comforting, nostalgic, and always a crowd favorite

It’s no wonder this dish remains a Southern classic.

Common Mistakes to Avoid

Even the best cooks can run into trouble if they overlook these key details:

Overcooking the squash: This leads to mushy texture and excess water.
Skipping the draining step: Squash holds a lot of moisture—press it well after sautéing.
Underbaking the topping: Make sure it browns fully to achieve that signature crunch.

These simple fixes can elevate your casserole from good to unforgettable.

Make-Ahead and Storage Instructions

This casserole is great for prepping in advance, especially during busy holiday cooking.

Make-Ahead:

Assemble the casserole (without baking) up to 2 days in advance.
Cover tightly with plastic wrap and refrigerate.
When ready, let it sit at room temperature for 20–30 minutes before baking as directed.

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Storage:

Store leftovers in an airtight container in the refrigerator for up to 4 days.
Reheat in the oven at 325°F for 10–15 minutes to restore crispiness.
Avoid microwaving if possible—it softens the topping and changes the texture.

Popular Variations of Squash Casserole

One of the reasons Southern squash casserole remains so beloved is its versatility. Here are a few creative ways to add new flavor profiles or adapt the dish for specific diets.

With Bacon Bits or Ham

Add crispy bacon or diced cooked ham to the filling before baking.
Adds a smoky, savory depth that balances the sweetness of squash.

Spicy Jalapeño Version

Stir in chopped jalapeños or a pinch of cayenne pepper for heat.
Ideal for spice lovers or as a bold side at BBQs.

Keto or Low-Carb Squash Casserole

Replace crackers with crushed pork rinds or almond flour.
Use full-fat cream cheese instead of sour cream for more fat and fewer carbs.

Vegan/Dairy-Free Adaptation

Swap out eggs with flax eggs or a commercial egg replacer.
Use plant-based cheese and vegan mayo or cashew cream.
Choose gluten-free breadcrumbs if needed.

These adjustments allow you to enjoy the cheesy squash bake experience, no matter your dietary preference.

What to Serve with Southern Squash Casserole

This dish shines as a side, but it truly excels when paired with classic Southern mains. Its creamy texture and rich flavor balance beautifully with savory meats and simple breads.

Best Pairings:

Fried or baked chicken
Meatloaf or turkey meatballs
BBQ ribs or pulled pork
Grilled pork chops or sausages

Side Companions:

Skillet cornbread or biscuits
Fresh green beans or collard greens
Sweet potato casserole

Whether you’re planning a Thanksgiving feast, Easter lunch, or a Sunday dinner, Southern squash casserole is the side dish everyone will scoop seconds of.

Nutritional Information

This comfort food casserole may be rich and satisfying, but with smart swaps, it can also fit into a balanced diet.

Calories per serving: ~220–250 kcal
Carbs: ~16g
Protein: ~7g
Fat: ~17g

Healthier Substitutions:

Use Greek yogurt instead of sour cream or mayo for added protein.
Choose reduced-fat cheese.
Swap crackers for a smaller amount of whole-grain breadcrumbs.

You still get that indulgent cheesy, savory flavor, but with a lighter touch.

Can You Freeze Squash Casserole?

Yes, you can freeze Southern squash casserole, but it’s best done before baking to preserve texture.

Freezing Tips:

Assemble the casserole and cover tightly with foil.
Freeze for up to 2 months.
Thaw in the fridge overnight before baking as normal.

If Already Baked:

Cool completely before wrapping.
Reheat from frozen in a 350°F oven, covered with foil for 25–30 minutes, then uncovered for 10–15 minutes to crisp the top.

While freezing may slightly soften the texture, it’s a convenient option for holidays or meal prepping.

Frequently Asked Questions (FAQs)

Why is my squash casserole watery?

Overcooking squash causes it to release excess moisture. To prevent this:

Sauté squash only until just tender.
Drain thoroughly in a colander.
Gently press with a spatula to remove additional water.

Can I use zucchini instead of yellow squash?

Yes, zucchini is a great alternative. In fact, a mix of zucchini and yellow squash adds visual appeal and complexity to the flavor. Just be sure to prep it the same way—sauté and drain thoroughly.

How do you keep squash casserole from getting soggy?

Don’t skip the draining step after sautéing.
Avoid covering the casserole while baking.
Use a well-preheated oven to get a crispy top.

These steps ensure the casserole stays creamy but not mushy.

Is this dish vegetarian?

Yes—when made with vegetarian-friendly ingredients. Just avoid:

Adding bacon or ham
Using meat-based soups (like chicken or beef)

Stick with vegetables, eggs, and dairy for a classic vegetarian side dish.

What cheese is best for squash casserole?

Sharp cheddar is the traditional choice for its bold flavor.
Mozzarella gives a gooier, stretchier texture.
Gruyère or Parmesan can elevate the dish with a nutty or salty profile.

Experiment with blends to create your ideal version of this classic comfort casserole.

Southern Squash Casserole Recipe

This Southern Squash Casserole is the ultimate comfort food side dish featuring tender yellow squash, savory onions, melty cheese, and a buttery Ritz cracker topping. Perfect for holidays, potlucks, or Sunday dinners, it’s creamy, crunchy, and full of Southern charm.

Print Recipe Pin Recipe

Prep Time 20

Cook Time 35

Total Time 55

Course Comfort Food, Holiday Side, Side Dish

Cuisine American, Southern

Servings 8 servings

Calories 250 kcal

Equipment

Large Skillet
Colander
Mixing bowl
9x13 inch baking dish
Oven
Spatula
Whisk

Ingredients

5 –6 cups sliced yellow squash
1 medium yellow onion chopped
2 large eggs
1 cup shredded cheddar cheese
1/2 cup sour cream or mayonnaise
1 cup crushed Ritz crackers or breadcrumbs
3 tablespoons unsalted butter melted
1/2 teaspoon salt
1/4 teaspoon black pepper
Optional: cooked bacon bits Parmesan cheese, paprika, garlic powder

Instructions

Sauté Squash & Onion

In a large skillet, cook sliced squash and chopped onion over medium heat until tender (8–10 mins).

Drain

Transfer to a colander and press gently to remove excess water.

Mix Filling

In a bowl, whisk eggs, sour cream (or mayo), salt, pepper, and 1/2 of the shredded cheese. Stir in drained squash mixture.

Assemble

Pour into a greased 9x13” baking dish. Sprinkle with crushed crackers, remaining cheese, and melted butter.

Bake

Bake at 350°F (175°C) for 30–35 minutes until golden brown and bubbly.

Serve

Cool for 5–10 minutes, then serve warm.

Notes

Don’t skip draining the squash—this prevents a watery casserole.
Make ahead: assemble and refrigerate up to 2 days before baking.
To make it gluten-free, use GF crackers or breadcrumbs.
Freeze unbaked for best texture. Thaw overnight before baking.
Add-ins like ham, jalapeños, or extra cheese take it up a notch!

Keyword cheesy squash bake, Southern side dish, Southern squash casserole, squash and cheese, vegetable casserole, yellow squash casserole