Bacon Onion Jam Dip (Creamy & Caramelized)

Name: Bacon Onion Jam Dip
Prep time: 15 min
Cook time: 90 min
Total time: 150 min
Ingredients: 20 oz Applewood Smoked Bacon; 2 pounds yellow onions (diced); 4 shallots (halved and sliced); 1/2 cup brown sugar; 1/2 cup balsamic vinegar; 1/4 cup water (plus more as needed); Salt & Pepper to taste; 16 oz sour cream; 2 scallions (green and whites sliced/diced)

If you’re looking for a dip that’s going to steal the show at your next party, this Bacon Onion Jam Dip is it. We’re talking crispy applewood-smoked bacon, slowly caramelized onions, shallots, brown sugar, and balsamic vinegar, all cooked down into a rich, savory jam and folded into creamy sour cream.

It’s sweet, smoky, tangy, and loaded with flavor. And when you scoop it up with a salty potato chip? Forget about it.

What is Bacon Onion Jam Dip?

Bacon onion jam dip is a creamy appetizer made by combining homemade bacon onion jam with sour cream.

The jam itself is made by slowly cooking bacon, onions, shallots, brown sugar, and balsamic vinegar until the mixture becomes thick, dark, and deeply flavorful.

Once cooled, the jam gets folded into sour cream with fresh scallions.

The result is a rich, creamy dip with a combination of smoky bacon, sweet caramelized onions, tangy balsamic vinegar, and fresh onion flavor.

It’s everything I love about a classic onion dip, but taken to another level.

Why You’ll Love This Bacon Onion Dip

There are a few things that make this recipe stand out.

First, we’re using real applewood-smoked bacon. The bacon brings plenty of smoky, savory flavor, and we use some of the rendered bacon fat to cook the onions.

Second, we’re not rushing the caramelization process. The onions and shallots slowly cook down with balsamic vinegar and brown sugar until they develop a thick, jam-like consistency.

And finally, the sour cream balances all that richness. It creates a creamy base that keeps the dip from feeling overly heavy while letting the bacon onion jam remain the star.

It’s the kind of dip I love putting out for game day, holidays, or whenever people are coming over.

Ingredients You’ll Need

Applewood-smoked bacon: I use 20 ounces of bacon for this recipe. The smoky flavor is a big part of what makes the jam so good, and the rendered bacon fat helps flavor the onions.

Yellow onions: Two pounds of yellow onions might sound like a lot, but they cook down significantly as the jam develops. They become sweet, tender, and deeply caramelized.

Shallots: Shallots add another layer of onion flavor with a slightly sweeter, more delicate taste.

Brown sugar: The brown sugar adds sweetness and helps create the rich, jammy consistency.

Balsamic vinegar: This is one of the most important ingredients. The acidity balances the sweetness of the onions and brown sugar while adding depth to the finished jam.

Water: A little water helps the onions soften and prevents the mixture from drying out as it cooks.

Sour cream: I use full-fat sour cream for a rich, creamy texture. I personally like FAGE for dips because of its consistency.

Scallions: Fresh scallions add a little brightness and contrast to the rich bacon onion jam.

Salt and pepper: Season to taste, keeping in mind that the bacon already brings plenty of saltiness.

The Secret is Slowly Cooking the Bacon Onion Jame

The most important part of this recipe is giving the onions enough time to cook down.

I start by rendering the bacon until it’s crispy, then use some of that bacon fat to cook the onions and shallots.

The brown sugar and balsamic vinegar go in early, along with a little water, and everything slowly cooks together.

As the onions soften and release their moisture, the mixture begins to reduce. Eventually, the onions turn dark brown and develop that thick, almost sticky consistency you’re looking for.

This isn’t something I like rushing.

You want the onions to become deeply caramelized without burning, so keep an eye on the heat and add a little water whenever the mixture starts sticking to the bottom of the pot.

By the time it’s finished, you’ll have a bacon onion jam that’s packed with sweet, smoky, savory flavor.

How to Make Bacon Onion Jam Dip

1. Cook the Bacon Until Crispy

Start by adding the diced applewood-smoked bacon to a heavy-bottomed pot over medium heat.

Cook for approximately 10–15 minutes, stirring occasionally, until the fat has rendered and the bacon is crispy.

Remove the bacon and set it aside, reserving a couple tablespoons of bacon fat in the pot.

2. Start the Onion Jam

Add the diced yellow onions, sliced shallots, brown sugar, balsamic vinegar, and water to the pot with the reserved bacon fat.

Season lightly with salt and pepper and stir until everything is combined.

Cover the pot and let the onions cook for approximately 15–20 minutes until they begin to soften.

3. Slowly Caramelize the Onions

Return the crispy bacon to the pot and stir everything together.

Partially cover and continue cooking over medium-low heat, stirring occasionally, for approximately one hour.

As the onions cook, they’ll gradually become darker, softer, and more concentrated in flavor.

If the mixture starts to dry out or stick, add water a tablespoon at a time.

You’re looking for a thick, dark brown, jam-like consistency.

4. Cool the Bacon Onion Jam

Once the jam is finished, remove it from the heat.

Transfer it to a shallow container and allow it to cool before refrigerating until completely chilled.

You don’t want to mix hot bacon onion jam directly into cold sour cream.

5. Mix the Dip

Add the sour cream, cooled bacon onion jam, and sliced scallions to a large mixing bowl.

Stir until everything is evenly combined.

Taste and adjust the seasoning as needed. Then Chill and serve with your favorite potato chips.

Frequently Asked Question

What is bacon onion jam dip made of?

Bacon onion jam dip is made with crispy bacon, slowly caramelized onions, shallots, brown sugar, balsamic vinegar, sour cream, and scallions. The bacon onion jam is cooked separately, cooled, and then mixed into the sour cream.

Can I make bacon onion jam dip ahead of time?

Yes. You can prepare the bacon onion jam ahead of time and refrigerate it. Once cooled, mix it with sour cream and scallions and keep the finished dip chilled until serving.

How long does it last in the fridge?

Store the finished dip in an airtight container, in the fridge, for up to 3-4 days.

Can I use Greek yogurt instead of sour cream?

Yes, although the flavor and texture will be different. Full-fat plain Greek yogurt will create a tangier dip, while sour cream gives you the rich, creamy texture I prefer for this recipe.

What should i serve with bacon onion jam dip?

Potato chips are my favorite, especially thicker chips that can hold up to the dip. Crackers, toasted bread, and fresh vegetables are also good options.

Why is my bacon onion jam too thick?

As the onions cook, the liquid reduces and the sugars concentrate. If the mixture becomes too thick or starts sticking before the onions are fully cooked, add water a tablespoon at a time and lower the heat if needed.

This is Not Your Average Onion Dip

I love a good onion dip, but this one is on another level. Instead of reaching for a packet of seasoning, I’m making a homemade bacon onion jam with applewood-smoked bacon, slowly caramelized onions, brown sugar, and balsamic vinegar.

It takes a little patience to get that deep, rich flavor, but that’s what makes this dip so good. Once the jam cools, I mix it into sour cream with fresh scallions, and that’s really all there is to it. Grab a bag of your favorite potato chips, because once you start dipping, it’s hard to stop.

Bacon Onion Jam Dip