Southern Squash Casserole with Bacon
A cheesy, rich casserole that’s perfect as a side dish or appetizer, Southern Yellow Squash Casserole with Bacon is the ideal summertime recipe! Sauteed yellow squash (summer squash), onions and bacon are baked with a creamy mixture topped with cheese and crushed butter crackers. Make sure to bake enough for seconds!
I’ve always been a huge fan of yellow squash. It always tastes so much butter than any other type of squash due to it’s crunch exterior yet soft interior. I needed to make this vegetable shine a little more for my kids.. So how do we do that? Cheese, crackers, and BACON!
Why You’ll Love This Southern Squash Casserole Recipe
This Southern Squash Casserole with Bacon recipe pairs cheesy flavors with a little bit of buttery crunch from the garlic butter Ritz cracker topping. This is not only the perfect summertime casserole for barbecues and parties, but for kids, too. It’s my family’s FAVORITE summertime casserole.
This recipe incorporates sauteed yellow squash, onion, and bacon smothered in a rich, creamy cheese sauce. This is then layered with cheese and crushed garlic butter Ritz crackers. The squash casserole is then baked until bubbly and golden brown for the perfect crisp topping.
Southern Yellow Squash Casserole Ingredients
Yellow Squash – go for medium to large sized squash bright yellow in color and semi firm to the touch.
Cheese – choose a good quality yellow cheddar and fresh parmesan cheese for grating.
Sour Cream – mild flavor, creamy texture.
Mayonnaise – paired with the sour cream, this adds to the creamy texture but also adds more flavor.
Onion – Adds just a little more texture and flavor to the squash casserole. Go for yellow onion as it has a slightly sweet flavor that goes beautifully with this dish.
Egg – just 1 egg is needed for this recipe to add some structure to the casserole.
Butter Crackers – Ritz Garlic Butter crackers are the BEST option to be crushed down into a crumbly topping. You can find them at most local grocery stores or on Amazon.
Butter – Kerrygold salted butter is my go to!
Bacon – adds texture and flavor. Completely optional, but recommended.
Garlic Powder – for flavor.
Salt – to taste
How to Make Southern Squash Casserole with Bacon
Preheat the oven to 350°F and grease a 9” x 11” casserole dish. Slice 5 yellow squash into bite sized chunks, place on a paper towel, and sprinkle with salt. Allow this to rest for a few minutes until you notice beads of water being released.
In the meantime, heat a large frying pan to medium-high heat and add 6 slices of bacon (the pan in the photo is from Caraway). Cook completely and remove the bacon to cool. Collect excess bacon grease in a bowl and set aside as we will add this to our creamy mixture. Allow the pan to remain hot and coated with a little bit of grease.
Slice ½ a yellow onion and add to the pan. Dab the yellow squash dry and add to the pan with onion after the onion has cooked for about 1 minute. Season with a pinch of salt and continue to cook until both the onions and squash are translucent and soft. Remove from the pan and place on a paper towel to drain. Set aside to cool.
In a separate large bowl, mix together ¼ sour cream, ½ cup mayonnaise, 1 egg, 2 tbsp bacon grease, ½ tsp salt, and ¾ tsp garlic powder. Add in 1 ¼ cup shredded cheddar and ½ cup shredded parmesan cheese.
Add the cooked squash and onion to the mixture until fully coated. Place the mixture into the greased casserole dish.
Crush 20 garlic butter Ritz crackers until they are fine crumbles and mix in with 3 tbsp melted butter. Top the casserole with the buttery cracker crumbles.
Bake in the oven for 40 minutes (give or take a few minutes depending on the thickness of your casserole). You will know it is done when it does not wiggle when you shake the casserole dish and the crust is golden brown.
Remove the casserole from the oven and allow to cool.
Southern Squash Casserole Notes
Do not peel the squash! The skin of yellow squash holds the vegetable together and removing it will result in a pile of mush when cooked.
Once sliced, make sure to get as much moisture out of the squash as possible. This vegetable holds lots of water which can release into the casserole when baked resulting in a watery, thin texture. Remove as much as possible by salting
Use a good pan when making this to prevent the squash from sticking. This squash tends to get ripped apart when it sticks to the pan. If you want a “pretty” nonstick pan that does not contain harmful chemicals, go with Caraway. A more affordable option that performs the same is Sensarte.
Note: This post contains affiliate links in which the creator may receive commission. We have personally tested these products and hope you love them as much as we do!
Southern Squash Casserole with Bacon
Ingredients
- 5 whole Yellow Zucchini Squash also known as summer squash
- 6 slices Bacon
- 1/2 Yellow Onion
- 1/4 cup Sour Cream Daisy brand
- 1/2 cup Mayonnaise Hellman's or Best Foods
- 1 Egg
- 1/2 tsp Salt adjust to taste
- 3/4 tsp Garlic Powder
- 1 ¼ cup Cheddar Cheese shredded
- 1/2 cup Parmesan Cheese shredded
- 20 Garlic Butter Ritz Crackers
Instructions
- Preheat the oven to 350F and grease a 9” x 11” casserole dish. Slice 5 yellow squash into bite sized chunks, place on a paper towel, and sprinkle with salt. Allow this to rest for a few minutes until you notice beads of water being released.
- Heat a large frying pan to medium-high heat and add 6 slices of bacon. Cook completely and remove the bacon to cool. Collect excess bacon grease in a bowl and set aside as we will add this to our creamy mixture. Allow the pan to remain hot and coated with a little bit of grease.
- Slice ½ a yellow onion and add to the pan. Dab the yellow squash dry and add to the pan with onion after the onion has cooked for about 1 minute. Season with a pinch of salt and continue to cook until both the onions and squash are translucent and soft. Remove from the pan and place on a paper towel to drain. Set aside to cool.
- In a separate large bowl, mix together ¼ sour cream, ½ cup mayonnaise, 1 egg, 2 tbsp bacon grease, ½ tsp salt, and ¾ tsp garlic powder. Add in 1 ¼ cup shredded cheddar and ½ cup shredded parmesan cheese.
- Add the cooked squash and onion to the mixture until fully coated. Place the mixture into the greased casserole dish.
- Crush 20 garlic butter Ritz crackers until they are fine crumbles and mix in with 3 tbsp melted butter. Top the casserole with the buttery cracker crumbles and bake in the oven for 40 minutes (give or take a few minutes depending on the thickness of your casserole). You will know it is done when it does not wiggle when you shake the casserole dish and the crust is golden brown.
- Remove the casserole from the oven and allow to cool. Enjoy!