Easy Yellow Squash Casserole Recipe

There's nothing quite like the comforting taste of Yellow Squash Casserole fresh from the oven. This classic Southern side dish combines tender squash, a creamy, cheesy filling, and a crispy, buttery cracker topping that delivers the perfect crunch in every bite.

I first fell in love with this recipe at a family potluck, where one bite took me straight back to childhood dinners at my grandmother's house. Whether you're serving it for a holiday feast or an easy weeknight dinner, this casserole is sure to become a staple in your home.

Why You'll Love This Yellow Squash Casserole

Get ready to add this Yellow Squash Casserole to your list of go-to side dishes. It’s not just delicious—it’s incredibly simple and versatile.

First, it's quick and easy to prepare. With just a few basic ingredients and minimal prep time, you can have this dish in the oven in under 15 minutes.

It's also budget-friendly. Yellow squash is inexpensive and readily available, making this a cost-effective dish that still feels indulgent and satisfying.

The combination of creamy and crunchy is unbeatable. The tender squash is enveloped in a rich, cheesy sauce and topped with golden, buttery crackers, creating the perfect balance of textures.

Plus, it’s a crowd-pleaser. Even picky eaters who claim they don’t like squash will find themselves coming back for seconds.

Ingredients Notes

The magic of this Yellow Squash Casserole lies in its simple, yet carefully chosen ingredients. Each one contributes to the irresistible flavor and texture of this dish.

Yellow squash is the star of the show. Look for firm, unblemished squash for the best flavor and texture. You can use a mix of small and medium-sized squash for a good balance of tenderness.

Onion adds depth and a subtle sweetness that enhances the overall flavor of the casserole. I recommend using yellow or sweet onion, finely chopped for even distribution.

Cheddar cheese brings a sharp, creamy richness. A freshly grated block of cheddar melts more smoothly than pre-shredded cheese, which often contains anti-caking agents.

Sour cream contributes a slight tang and extra creaminess, ensuring the casserole isn’t dry. Greek yogurt is a great substitute if you prefer a lighter option.

Crushed butter crackers (such as Ritz) make the perfect crispy topping. Their buttery flavor complements the creamy filling, creating a delicious contrast in every bite.

How To Make This Yellow Squash Casserole

Making this casserole is as easy as it is delicious. Here’s how to do it step by step.

Start by prepping the squash. Slice the yellow squash into thin rounds and cook them in a large skillet with a bit of butter until they become tender. This helps remove excess moisture and prevents the casserole from becoming watery.

Meanwhile, sauté the onions. Once the squash is almost done, add the chopped onions and cook them until soft and fragrant. This ensures they blend seamlessly into the filling without any raw onion bite.

Next, mix the creamy filling. In a large bowl, combine the cooked squash and onions with shredded cheddar cheese, sour cream, salt, and pepper. Stir everything together until well combined.

Transfer the mixture to a greased baking dish and prepare the topping. Crush the butter crackers and mix them with a little melted butter. Sprinkle this buttery, crunchy topping evenly over the casserole.

Finally, bake until golden. Place the casserole in a preheated oven at 350°F (175°C) and bake for about 25-30 minutes, or until the top is golden brown and crispy.

Storage Options

This Yellow Squash Casserole stores beautifully, making it a great make-ahead dish.

For refrigeration, let the casserole cool completely, then cover tightly with plastic wrap or aluminum foil. It will keep well in the fridge for up to 3 days.

To freeze, assemble the casserole but hold off on adding the cracker topping. Wrap the dish tightly in plastic wrap and foil, and freeze for up to 3 months. When ready to bake, thaw overnight in the fridge, add the topping, and bake as usual.

To reheat, place the casserole in a 350°F oven for about 15-20 minutes, or until warmed through. If reheating a single portion, the microwave works fine—just heat in 30-second intervals until hot.

Variations and Substitutions

One of the best things about this Yellow Squash Casserole is how easy it is to customize!

For a healthier twist, swap out the sour cream for Greek yogurt and use whole wheat crackers for the topping. This keeps the dish creamy while adding a bit of extra protein and fiber.

If you love extra cheesy goodness, mix in some Parmesan or Gruyère along with the cheddar for added depth of flavor.

For a low-carb version, skip the crackers and use crushed pork rinds or almond flour mixed with Parmesan as the topping. This keeps the crispiness without the extra carbs.

Want a heartier casserole? Add cooked, crumbled bacon or diced ham for a meaty variation that makes it a complete meal.

Experimenting with different cheeses, mix-ins, and toppings can help you create a version that’s perfect for your taste. No matter how you tweak it, this Yellow Squash Casserole is sure to be a hit!

Whether you're serving this alongside roast chicken for Sunday dinner or as a side for a holiday gathering, this Easy Yellow Squash Casserole is a must-try. Creamy, cheesy, and irresistibly crunchy on top, it’s comfort food at its best!

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