This Dairy-Free Onion Dip is a creamy, savory snack or appetizer. And it’s so easy to make! Serve it with crunchy vegetables and your favorite crackers or potato chips. It’s perfect for parties, game day, or a mid-day pick-me-up.
Plus it’s also gluten-free, low carb, keto and can easily be made vegan and Paleo friendly.

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Why this recipe works
Onion dip is one of the most popular appetizers and it’s easy to see why. It’s not just thick and creamy – the savory seasonings are balanced by the hint of sweetness in the caramelized onions.
But for those of us who are dairy-free, we can’t eat the traditional version because it’s usually made with sour cream, cream cheese and/or yogurt. So I created this dairy-free version that’s just as good as the regular one. You only need to make a few simple swaps and your dip is ready to go.
We’ll keep the mayonnaise because it adds a creamy texture and a bit of tanginess. Just make sure to use a Paleo or vegan version if you need that.
Instead of sour cream and cream cheese, we’re using dairy-free yogurt. Like the mayonnaise, it adds creaminess and tanginess without overpowering the onion flavor. I tested this recipe with dairy-free sour cream and it had a surprisingly strong flavor that overshadowed the onions, so I decided not to use it.
But everything else is the same – cooked onions, onion powder (for more onion flavor!), lemon juice, salt and pepper. You can add a bit of cayenne pepper if you want a hint of spice. And I like to top it with finely sliced chives to really drive home the onion flavor.
You just mix everything together and serve it up with your favorite vegetables, crackers and chips. And it keeps in the fridge for up to 5 days so it’s great for making ahead of time.
What you need
Ingredients:
- 3 tablespoons extra virgin olive oil – This adds a subtle flavor without making the dip oily.
- 2½ cups of peeled, diced yellow onion – You’ll need about 2 large onions. I’ve tried this recipe with a mixture of yellow and red onions and didn’t like it as much. I recommend sticking with all yellow onions.
- 1 teaspoon fine sea salt, divided
- ½ teaspoon black pepper – You need a good amount of pepper to cut through the creaminess of the dip.
- ½ teaspoon onion powder – This adds to the onion flavor.
- ¼ cup water – This is optional in case you need to deglaze the pan with the onions.
- ½ cup mayonnaise – Make sure it’s Paleo, vegan, etc., if that’s what you need. I like this avocado oil mayonnaise to make the recipe Paleo. And they also have a vegan version.
- ½ cup dairy-free yogurt – I like Kite Hill for a dairy-free and vegan option. For a Paleo option, I also like Harmless Harvest.
- 1 tablespoon lemon juice – This adds a bit of bright freshness.
- 1 tablespoon thinly sliced chives – This adds a pop of color, a bit of freshness and, of course, a bit more onion flavor.
- for serving: raw vegetables like baby carrots, broccoli or cauliflower florets, sugar snap peas or strips of bell pepper; crackers; potato chips
Equipment:
- a large skillet (12″)
- a wooden or silicone spatula
- measuring spoons
- measuring cups
- a measuring glass
- a cutting board
- a chef’s knife
- a citrus juicer (optional, or just use a fork to stab and squeeze the juice of out half a lemon)
- a medium mixing bowl
- a serving bowl
How to make Dairy-Free Onion Dip
Step 1: Heat the skillet over medium-high heat. Add the oil, then 30-60 seconds later stir in the onions, ½ teaspoon salt, the pepper and onion powder. Let cool for about 5 minutes, stirring occasionally.
Step 2: Turn the heat down to low and cook the onions until they’re soft and caramelized, stirring occasionally, about 12-15 minutes. Be sure to scrape up the bottom of the pan as you stir the onions to get all the little brown bits of flavor.
Step 3: Once the onions are ready, if there’s still a lot of brown bits on the bottom of the pan, add the water and use your spatula to scrape up the bits. Let the water simmer until almost completely evaporated, about 5 minutes. Then transfer the onions to a medium mixing bowl. (If you don’t need the water, just transfer the onions immediately to the bowl.) Let cool.
Step 4: Add the mayonnaise, yogurt, lemon juice and another ½ teaspoon salt. Stir until everything is combined. Taste and adjust seasonings, if necessary. Serve right away or chill covered in the fridge for up to a week.
Frequently Asked Questions
I tested this recipe with all yellow onions and a combination of yellow and red onions. I preferred the all-yellow version but feel free to experiment.
You can use whatever kind of mayonnaise you like – Paleo, vegan, etc.
You can use whatever yogurt you like – Paleo, vegan, etc.
I tested this recipe with dairy-free sour cream and, while the texture was thicker, the flavor was much too strong. But if you want, you could try ¼ cup yogurt and ¼ cup sour cream (or dairy-free cream cheese).
If you want a bit more spice, add more black pepper or a pinch of cayenne.
Yep, you can chill it in the fridge, covered, for up to a week.
I do not recommend freezing this.
Yep. The recipe as written is gluten-free. Serve the dip with gluten-free chips or crackers, and/or vegetables (see suggestions above.)
If you use vegan mayonnaise and vegan yogurt then yes, this is also vegan.
Other recipes you might like:
- Dairy-Free Veggie Dip (Paleo, vegan, keto)
- Peanut Butter Yogurt Dip (Paleo/vegan option)
- Bacon Pineapple Guacamole (Paleo)
- Paleo Buffalo Chicken Dip (dairy-free)
Dairy-Free Onion Dip (Paleo, vegan, gluten-free)
Ingredients
- 3 tablespoons extra virgin olive oil
- 2½ cups peeled, diced yellow onion from about 2 large onions
- 1 teaspoon fine sea salt, divided
- ½ teaspoon black pepper
- ½ teaspoon onion powder
- ¼ cup warm water, if necessary
- ½ cup mayonnaise, Paleo/vegan if necessary
- ½ cup dairy-free yogurt, Paleo/vegan, if necessary
- 1 tablespoon lemon juice
- for serving: raw vegetables like baby carrots, broccoli or cauliflower florets, sugar snap peas or strips of bell pepper; crackers; potato chips
Instructions
- Heat a large (12") skillet over medium-high heat. Add the oil, then 30-60 seconds later stir in the onions, ½ teaspoon salt, the pepper and onion powder. Let cool for about 5 minutes, stirring occasionally.
- Turn the heat down to low and cook the onions until they're soft and caramelized, stirring occasionally, about 12-15 minutes. (This might not seem like enough time, but these are diced onions and therefore caramelize faster than sliced onions.) Be sure to scrape up the bottom of the pan as you stir the onions to get all the little brown bits of flavor.
- Once the onions are ready, if there's still a lot of brown bits on the bottom of the pan, add the water and use your spatula to scrape up the bits. Let the water simmer until almost completely evaporated, about 5 minutes. Then transfer the onions to a medium mixing bowl. (If you don't need the water, just transfer the onions immediately to the bowl.) Let cool for about 15 minutes.
- Add the mayonnaise, yogurt, lemon juice and another ½ teaspoon salt. Stir until everything is combined. Taste and adjust seasonings, if necessary. Serve right away or chill covered in the fridge for up to a week.
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