Southern-Style Squash Casserole Side Dish

Squash Casserole

With its creamy filling and golden topping, Squash Casserole is pure comfort in every bite. The buttery cracker topping, the rich cheddar cheese, and the tender yellow squash all come together in one heavenly bite.

This recipe takes me back to summer dinners at my grandmother’s house, where the kitchen smelled like roasted squash and melted butter. It was always a favorite at family gatherings, and now, I’m thrilled to share my version of this classic dish with you.

This squash casserole is everything you’d want in a comforting side dish. It’s creamy, cheesy, and topped with golden, buttery Ritz crackers for the perfect crunch.

Whether you’re using fresh summer squash from the garden or grabbing a few from the store, this recipe is simple to make and always a crowd-pleaser. Ideal for potlucks, or Sunday dinners, it’s a Southern staple you’ll want to make again and again.

Squash Casserole

Ingredients for Southern Squash Casserole

This southern squash casserole is packed with simple, delicious ingredients that come together beautifully. Here’s what you’ll need:

  • 6 cups yellow squash, thinly sliced (about 4 medium squash)
  • 1 small onion, finely chopped
  • 2 tablespoons unsalted butter
  • ½ cup sour cream
  • 1 can (10.5 oz) cream of mushroom soup
  • 1 teaspoon salt
  • ½ teaspoon black pepper
  • ½ teaspoon garlic powder
  • 1½ cups shredded cheddar cheese
  • 1 cup Ritz crackers, crushed (about 1 sleeve)
  • 2 tablespoons unsalted butter, melted

You’ll Also Need:

  • 9×13-inch baking dish
  • Large skillet
  • Medium mixing bowl

Once you’ve got everything ready, let’s move on to the fun part, putting it all together!

How to Make The Best Squash Casserole

Making this creamy, cheesy casserole is easier than you might think. Just follow these simple steps, and you’ll have a delicious side dish ready in no time.

Step 1: Sauté the squash and onions

Start by heating 2 tablespoons of butter in a large skillet over medium heat. Add the sliced yellow squash and chopped onions.

Cook for about 8–10 minutes, stirring occasionally, until the squash is tender and the onions are translucent. Remove from heat and set aside.

Step 2: Mix the creamy filling

In a medium mixing bowl, combine the sour cream, cream of mushroom soup, salt, black pepper, and garlic powder.

Stir until everything is well blended. Add the cooked squash and onions to the bowl, then gently mix to coat the vegetables in the creamy mixture.

Step 3: Add the cheese

Stir 1 cup of shredded cheddar cheese into the squash mixture. This adds a rich, cheesy flavor that makes the casserole irresistible. Once mixed, transfer the filling to a greased 9×13-inch baking dish, spreading it out evenly.

Step 4: Make the buttery cracker topping

In a small bowl, mix the crushed Ritz crackers with the melted butter. Sprinkle this mixture evenly over the top of the casserole. Finally, sprinkle the remaining 1/2 cup of shredded cheddar cheese on top for extra gooey goodness.

Step 5: Bake to perfection

Preheat your oven to 350°F. Bake the casserole for 25–30 minutes, or until the top is golden brown and bubbling. Let it cool for a few minutes before serving, it’s hard to wait, but trust me, it’s worth it!

Squash Casserole1

Recipe Variations and Customization Ideas

This Southern Squash Casserole is incredibly versatile, so feel free to make it your own. Here are some of my favorite variations:

  • Vegetarian-friendly: Swap the cream of mushroom soup for a homemade cream sauce or a vegetarian canned soup option.
  • Add protein: Mix in cooked, crumbled bacon or shredded rotisserie chicken for a heartier casserole that could even work as a main dish.
  • Make it cheesy: Add a layer of shredded cheddar, Monterey Jack, or Gruyère to boost that melty goodness. You can even mix cheeses for extra flavor.
  • Low-carb option: Skip the crackers on top and use almond flour crumbs as a low-carb crunchy topping alternative.
  • Gluten-free variation: Use a gluten-free cream of mushroom soup and substitute the topping with gluten-free breadcrumbs or crushed rice crackers.
  • More veggie-packed: Stir in sautéed onions, bell peppers, or spinach to make the casserole even more colorful and nutritious.
  • Spice it up: Add a pinch of cayenne pepper, paprika, or a splash of hot sauce to give the casserole a gentle kick.
  • Lighter option: Swap the sour cream for Greek yogurt and use reduced-fat cheese to lighten things up without losing the creamy texture.
  • Make it crunchy: Top it with French fried onions or parmesan-panko mix before baking for a golden, crispy crust.

Frequently Asked Questions About Squash Casserole

We love using yellow summer squash, it’s tender, mild in flavor, and bakes beautifully. You can also mix in a little zucchini if you’d like!

Can I make this southern squash casserole ahead of time?

Yes! You can prepare the casserole up to the point of baking, then cover it and store it in the fridge for up to 24 hours. When you’re ready to bake, let it sit at room temperature for about 15 minutes before popping it in the oven.

What’s the best way to store leftovers?

Store any leftover casserole in an airtight container in the fridge for up to 3 days. To reheat, simply warm it in the oven at 350°F until heated through, or use the microwave for smaller portions.

Can I freeze squash casserole?

Yes, but I recommend freezing it before baking. Assemble the casserole and cover it tightly with plastic wrap and aluminum foil. Freeze for up to 2 months. When you’re ready to bake, thaw it overnight in the fridge, then bake as directed.

Can I use zucchini instead of yellow squash?

Absolutely! Zucchini works well if you don’t have yellow squash on hand. The flavor and texture are slightly different, but it’s still delicious.

Why is my squash casserole watery?

Squash naturally contains a lot of water. To prevent a watery casserole, cook the squash and onions thoroughly, then drain any excess liquid before mixing them with the other ingredients.

What toppings can I use instead of Ritz crackers?

Try panko breadcrumbs, crushed cornflakes, or even French fried onions for a different texture and flavor.

Is Squash Casserole vegetarian?

It can be! Just make sure your cream soup is vegetarian or use a homemade vegetarian cream soup version and skip the meat add-ins. It’s naturally meat-free otherwise.

Squash Casserole2

Simple ingredients, big flavor, don’t miss this one!

Southern Squash Casserole is the ultimate comfort food side dish, creamy, cheesy, and topped with buttery Ritz crackers for a little crunch.

Whether you’re serving it at Thanksgiving, a potluck, or a casual Sunday dinner, this recipe is sure to be a hit. I hope you enjoy making it as much as I do!

If you try this recipe, I’d love to hear how it turned out! Leave a comment below and let me know, or share your creations on social media.

Don’t forget to tag me so I can see your delicious results. Looking for more comfort food ideas? Check out my Patty Pan Squash Recipe, it’s just as creamy and satisfying!

Happy cooking!
Wanda

Squash Casserole

Squash Casserole Recipe

This Squash Casserole is a creamy, cheesy side dish topped with buttery crackers. Easy to make and always a hit at family dinners and holiday gatherings.
Prep Time 15 minutes
Cook Time 30 minutes
Total Time 45 minutes
Course Side Dish
Cuisine American, Southern
Servings 6

Equipment

  • Large skillet
  • Medium mixing bowl
  • 9×13-inch baking dish

Ingredients
  

  • 6 cups yellow squash thinly sliced (about 4 medium squash)
  • 1 small onion finely chopped
  • 2 tablespoons unsalted butter
  • ½ cup sour cream
  • 1 can 10.5 oz cream of mushroom soup
  • 1 teaspoon salt
  • ½ teaspoon black pepper
  • ½ teaspoon garlic powder
  • cups shredded cheddar cheese
  • 1 cup Ritz crackers crushed (about 1 sleeve)
  • 2 tablespoons unsalted butter melted

Instructions
 

Step 1: Sauté the squash and onions

  • Start by heating 2 tablespoons of butter in a large skillet over medium heat. Add the sliced yellow squash and chopped onions.
  • Cook for about 8–10 minutes, stirring occasionally, until the squash is tender and the onions are translucent. Remove from heat and set aside.

Step 2: Mix the creamy filling

  • In a medium mixing bowl, combine the sour cream, cream of mushroom soup, salt, black pepper, and garlic powder.
  • Stir until everything is well blended. Add the cooked squash and onions to the bowl, then gently mix to coat the vegetables in the creamy mixture.

Step 3: Add the cheese

  • Stir 1 cup of shredded cheddar cheese into the squash mixture. This adds a rich, cheesy flavor that makes the casserole irresistible. Once mixed, transfer the filling to a greased 9×13-inch baking dish, spreading it out evenly.

Step 4: Make the buttery cracker topping

  • In a small bowl, mix the crushed Ritz crackers with the melted butter. Sprinkle this mixture evenly over the top of the casserole. Finally, sprinkle the remaining 1/2 cup of shredded cheddar cheese on top for extra gooey goodness.

Step 5: Bake to perfection

  • Preheat your oven to 350°F. Bake the casserole for 25–30 minutes, or until the top is golden brown and bubbling. Let it cool for a few minutes before serving, it’s hard to wait, but trust me, it’s worth it!

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