Caramelized Onions

$2.16 recipe / $0.13 serving
by Jess - Budget Bytes
5 from 2 votes
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Are you an onion hater? If so, these velvety-smooth Caramelized Onions might just change your mind! I love onions in every form, but when cooked low and slow until golden brown and sweet, they become the side dish you never knew you needed. Use them to top a burger, add them to dips and sauces, or mix them into your favorite pasta dish! They’re a seriously budget-friendly way to add extra flavor to any meal. Plus, did you know you can get rid of onion breath by eating fresh parsley? You have no excuse now! Let’s dig in.

Overhead view of caramelized onions in a pan

If you watch Budget Bytes’ reels on social media, you probably already know onions are my favorite ingredient of all time. My stepdaughter, Bijou, knows my commitment to this vegetable from our game “Anything or Onions,” where she puts an undeniably delicious food (say, brownies) up against onions and the I have to choose which one I’d rather eat for the rest of my life. Spoiler alert: I always choose onions.

Why? Onions are sweet, spicy, and savory, wrapped in one cute little bulb! They can be crunchy (like our pickled red onions) or soft and buttery, like in this recipe you’re about to make. The Vidalia Onion is also the official state vegetable of my birthplace, the great state of Georgia!

What Are Caramelized Onions?

Caramelized onions are made by slowly cooking onions over a low heat until their natural sugars caramelize. I don’t add any extra sugar to this recipe, just a little oil, butter, and salt. As they cook, the water in the onions evaporates, and the pungent, sharp taste turns into a sweet, jammy, and savory treat. This process does take time (about 50 minutes) but requires very little effort. Make a big batch, and store them in your fridge to add meals throughout the week!

Ingredients

Here’s what you’ll need to make this caramelized onions recipe:

  • Onions: I used 3 medium yellow onions, which I sliced into even strips. White or red onions will also work well!
  • Olive Oil: Stops the onions from sticking to the pan and helps them caramelize evenly.
  • Butter: Adds a rich, buttery flavor to the onions. The milk solids in the butter will also brown as the onions cook, making them even more flavorful. Use unsalted butter as we add salt separately.
  • Salt: Draws out moisture from the onions (helping to speed up the caramelization process) and enhances their natural sweetness.

Serving Suggestions

I can’t think of many dishes that wouldn’t benefit from a spoonful of caramelized onions! Some recipes, like French onion soup, even use them as the main ingredient. Here are a few more serving ideas:

Tips for the Best Caramelized Onions

  • The exact timings will depend on the thickness of your onion slices and the size of your pan. Don’t be tempted to turn up the heat to speed up the process—this can cause the natural sugars to burn, rather than caramelize! I’ve included photos of my onions after 10, 25, and 40 minutes of cooking in the step-by-step below. Once your onions look like mine in the final photo, they’re done!
  • Don’t add extra sugar or sweeteners to speed up the caramelization process; this recipe really doesn’t need it. Time and patience will give you the best results!
  • Salting the onions before cooking will draw out moisture and help them cook down faster.
  • Deglaze the pan with a splash of liquid (like water, broth, vinegar, or wine) if your onions look dry. You shouldn’t have to do this if you keep the heat low, but it can also add some (optional) extra flavor if desired.
  • Cut your onions with a sharp knife to avoid that dreaded onion eye burn! You could also try Marsha’s Instagram reel trick for laying a wet paper towel over your cutting board—she says it really works!

Storage Instructions

Keep your onions in an airtight container in the fridge for up to a week, or freeze them for later. They’ll keep for 3-6 months in the freezer. Let them thaw in the fridge before using!

Caramelized onions in a white bowl.
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Caramelized Onions

5 from 2 votes
These velvety-smooth Caramelized Onions are a budget-friendly way to add extra flavor to any meal! Add them to burgers, pasta, and more!
Servings 16 servings, 2 Tbsp per serving (makes 2 cups total)
Prep 10 minutes
Cook 50 minutes
Total 1 hour

Ingredients

  • 3 medium onions ($1.80)
  • 1 Tbsp olive oil ($0.20)
  • 1 Tbsp butter ($0.13)
  • ½ tsp salt ($0.03)

Instructions 

  • Peel and slice onions into even strips.
  • Melt butter and olive oil in pan over medium high heat.
  • Add onions and use tongs to evenly coat with oil.
  • Season onions with salt to help release water.
  • Allow onions to cook at medium high heat for 5-10 minutes, or until onions begin to soften and turn golden brown.
  • Once browning begins, lower heat to medium and cook at this heat for 35-40 minutes.
  • Stir every few minutes to prevent sticking.
  • When onions are a deep golden brown, they are done!

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Nutrition

Serving: 1servingCalories: 22kcalCarbohydrates: 2gProtein: 0.2gFat: 2gSodium: 79mgFiber: 0.4g
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how to make Caramelized Onions – step by step photos

Sliced onions on a chopping board.

Peel and slice 3 medium onions into even strips.

A cube of butter and olive oil in a pan.

Melt 1 Tbsp butter and 1 Tbsp olive oil in pan over medium high heat.

Sliced onions in a pan.

Add onions and use tongs to evenly coat with oil.

A hand holding a spoon of salt above sliced onions in a pan

Season onions with ½ tsp salt to help release water.

Sliced onions in a pan after being cooked for 10 minutes.

Allow onions to cook at medium high heat for 5-10 minutes, or until onions begin to soften and turn golden brown.

Sliced onions cooking in a pan after 25 minutes.

Once browning begins, lower heat to medium and cook at this heat for 35-40 minutes.

Caramelized onions in a pan after 40 minutes.

Stir every few minutes to prevent sticking.

Finished caramelized onions in a pan.

When onions are a deep golden brown, they are done!

Side view of caramelized onions in a bowl.

These easy caramelized onions will be your new favorite side dish for pasta, pizzas, salads, and so much more!

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  1. I would like to encourage onion haters to try this delicious recipe! I despise raw onions–they have a horrible sulfurous taste that invades everything they touch. BUT cook those glorious bulbs and you have something absolutely wonderful.

    I come from a family of onion lovers and my mom did everything to get me to eat them–even grinding those suckers and adding them to salads and salad dressing, never understanding how the tiniest bit spoiled the taste of the whole dish. I hated them so much that I would pick the tiny bits out of cooked dishes such as meatloaf and casseroles. I even dislike scallions. I expect it’s a genetic thing much like what causes many to hate cilantro.

    BUT–as an adult I discovered that heat or vinegar could make onions not only acceptable, but delicious. I probably cook a couple of pounds of onions a week in various recipes, and I like them pickled, too. I usually have some delicious caramelized onions in the fridge to pile on sandwiches, soups, gravy, or pizza.

  2. I make giant batchfuls regularly and freeze them in cookie-scoop-sized lumps on a baking sheet. I call them my flavor bombs and toss them in recipes that need a little Shazam. They are excellent on top of mashed potatoes.

  3. I have to say, the “Anything or Onions” game with Bijou sounds adorable!

    Jess, do you pick shrimp po’ boys or onions?!