Southern Squash Casserole isn’t just another side dish—it’s a symbol of comfort that always makes its way to holiday tables and summer cookouts across the South. Tender yellow squash, buttery onions, sharp cheddar, and a golden cracker topping come together for a dish that feels like home, no matter where you serve it. If you’re looking for a savory bake that’s easy to make ahead and always crowd-pleasing, this is it. In this article, you’ll discover the simple steps, smart tips, and secrets for a Southern Squash Casserole that never turns out watery or bland.
My Southern Squash Casserole Story
Childhood Memories Around Southern Squash Casserole
Some of my warmest childhood memories revolve around the aroma of Southern Squash Casserole baking in my mother’s kitchen. Growing up in North Carolina, summer always meant backyard gardens overflowing with yellow squash. I still remember those busy Saturday mornings when my mom would ask us to pick squash before the heat set in. Our hands would be sticky from the vines, and laughter would fill the air as we compared the biggest ones. Those sun-kissed vegetables, sliced and sautéed with sweet onions, became the star of our weekend suppers.
My mother’s version of Southern Squash Casserole was simple, but somehow perfect every time. She’d always say the secret was draining the squash well, so the casserole stayed creamy but not soggy. That first bite—hot, cheesy, and topped with buttery crackers—made every summer meal feel special. Years later, when I became a mom myself, I realized why this dish endures: it’s quick, it’s comforting, and it brings everyone to the table with a smile.
How Southern Squash Casserole Became My Go-To
When my twins were born prematurely, I leaned into cooking as a way to bring warmth and nourishment to our little family. Southern Squash Casserole quickly became one of my most reliable recipes. It’s forgiving, endlessly adaptable, and ideal for busy parents craving home-cooked flavor without a fuss. Even now, on hectic weeknights, the act of slicing squash and assembling the casserole reminds me that good food doesn’t have to be complicated. If you love simple comfort, you’ll find this Southern Squash Casserole delivers on every front.

Southern Squash Casserole
Ingredients
- 2 pounds yellow squash sliced ¼ inch thick about 5 medium sized squash
- ¼ cup butter
- ½ cup diced onion
- ½ teaspoon garlic powder
- ¾ teaspoon salt
- ½ teaspoon black pepper
- ½ cup sour cream
- 1 large egg beaten
- 1 cup shredded cheddar cheese
- ½ cup grated Parmesan cheese
- 1 cup butter crackers finely crushed about 25 crackers
Instructions
- In a large pan set over medium heat, melt 1 Tablespoon of butter. Add the ½ cup of onion to the pan and sauté for 7 – 8 minutes, or until soft and translucent.
- Add the 2 lbs of sliced squash to the pan and cook for 10 – 12 min, or until the squash is soft. Stir frequently to prevent browning and to promote moisture release.
- Place a towel in a colander so your squash doesn’t slip through the holes, and place the cooked squash and onions on top of the towel to drain. Drain for at least 5 min, pressing any extra moisture out.
- Stir together the drained squash and onion, ½ teaspoon garlic powder, ¾ teaspoon salt, ½ teaspoon ground black pepper, ½ cup sour cream, 1 beaten egg, 1 cup shredded cheddar cheese, and ¼ cup of the shredded parmesan. You’ll use the rest of the parmesan in the next step.
- Melt remaining 3 Tablespoons of butter. Stir melted butter and remaining ¼ cup parmesan cheese into crushed crackers.
- Scrape the squash mixture into a 1.5 qt baking dish (8×8 square or similar)
- Sprinkle the butter and cracker mixture evenly over the top of the dish.
- Bake at 350 F for 25 min.
Notes
Calories: 240 kcal Carbohydrates: 10g Sugar: 3g Protein: 7g Fat: 19g Saturated Fat: 10g Cholesterol: 55mg Sodium: 430mg Fiber: 1g
Southern Squash Casserole Ingredients and Preparation
Choosing the Best Ingredients for Southern Squash Casserole
Great Southern Squash Casserole starts with the right ingredients. The heart of this dish is yellow squash—pick fresh, medium-sized squash with firm skin and no soft spots. The flavor is mild and slightly sweet, making it perfect for absorbing butter and cheese. Onion brings depth, so don’t skip it. For the creamy base, sour cream keeps the texture rich without feeling heavy, and just one beaten egg binds everything together.
Sharp cheddar cheese is classic, giving each bite a savory punch. Parmesan cheese, used in both the filling and the topping, adds a nutty edge that balances the squash’s sweetness. For the finishing touch, a layer of crushed butter crackers creates that crave-worthy golden crust. Using quality ingredients in the right amounts sets your casserole apart from bland, watery versions.
Here’s a quick ingredient table for easy prep:
Ingredient | Amount |
---|---|
Yellow squash (sliced ¼” thick) | 2 lbs (about 5 medium) |
Butter | ¼ cup |
Diced onion | ½ cup |
Garlic powder | ½ tsp |
Salt | ¾ tsp |
Black pepper | ½ tsp |
Sour cream | ½ cup |
Egg (beaten) | 1 large |
Shredded cheddar cheese | 1 cup |
Grated Parmesan cheese | ½ cup |
Butter crackers (crushed) | 1 cup (about 25 crackers) |
Step-by-Step: Making Southern Squash Casserole
Start by slicing your squash evenly—about ¼ inch thick. Melt a tablespoon of butter in a large pan over medium heat, then add diced onion. Sauté until the onion is soft and translucent, about 7–8 minutes. Next, add the squash to the pan. Cook for 10–12 minutes, stirring often to release moisture and avoid browning. Don’t rush this step; well-cooked squash means better texture in the final casserole.
When the squash is tender, drain it well. Place a towel-lined colander in the sink and pour the squash and onions inside. Let them rest for at least five minutes, then press out as much extra moisture as you can. This step is critical for a Southern Squash Casserole that isn’t watery. While the squash drains, combine sour cream, garlic powder, salt, pepper, a beaten egg, cheddar cheese, and half the Parmesan in a large bowl. Add the drained squash and onion, mixing gently.
Melt the remaining butter and stir it into the crushed crackers with the rest of the Parmesan. Spread the squash mixture into a 1.5-quart baking dish and top evenly with the buttery cracker mixture. Bake at 350°F for 25 minutes, or until the top is golden and crisp.

Southern Squash Casserole: Pro Tips and Tasty Variations
How to Keep Southern Squash Casserole from Getting Watery
No one wants a soggy Southern Squash Casserole. The key to a creamy, not watery, casserole is handling moisture from the squash. After cooking, always drain the squash and onions thoroughly. Set a towel in a colander to catch every drop—then gently press on the vegetables to release more liquid. Don’t skip this, even if the mixture looks dry. Too much moisture in the squash can turn your casserole runny and dilute the flavors.
Baking the casserole uncovered also helps excess moisture evaporate, keeping the cracker topping crisp and the filling set. If you’re in a hurry, you can even pat the squash dry with paper towels for extra insurance. Another trick? Sprinkle a tiny pinch of salt while cooking the squash to draw out more water, then drain as usual.
Customizing Southern Squash Casserole: Flavor Twists and Add-Ins
Southern Squash Casserole is forgiving and welcomes creativity. For a richer dish, swap cheddar cheese for Monterey Jack, Colby, or a spicy pepper jack. Mix in a handful of cooked, crumbled bacon or sautéed mushrooms for added depth. Want to brighten the flavor? Stir in a tablespoon of chopped fresh herbs like chives, parsley, or thyme before baking.
If you crave a crunchier top, try using panko bread crumbs mixed with melted butter instead of crackers. Gluten-free? Use gluten-free crackers or even crushed cornflakes. The base recipe stays the same, but small tweaks let you make Southern Squash Casserole your own. For busy weeks, you can assemble the casserole up to a day ahead—just add the topping right before baking for best results.
Serving, Storing, and FAQs for Southern Squash Casserole
Serving Suggestions: What Goes with Southern Squash Casserole?
Southern Squash Casserole shines as a side at family gatherings, summer cookouts, and holiday meals. Its creamy texture and cheesy topping pair well with almost any main course. For a classic Southern plate, serve it with fried chicken, roast turkey, or grilled pork chops. It also balances heartier dishes like meatloaf or BBQ pulled pork. On busy weeknights, this casserole can round out a meal of baked ham or even roasted vegetables. Add a crisp green salad or some sliced tomatoes, and you have a balanced, colorful spread.
This casserole holds its own at potlucks and picnics, too. Its sturdy texture means it travels well, and the flavor deepens as it rests. Serve warm from the oven, or let it cool slightly—it’s just as delicious.
Storing, Reheating, and Make-Ahead Tips
Store leftovers in an airtight container in the fridge for up to three days. To reheat, place the casserole in a 350°F oven until warmed through, about 15 minutes. This keeps the topping crisp. You can also microwave individual portions, but the crust may soften.
Want to plan ahead? Assemble Southern Squash Casserole without the cracker topping, cover, and refrigerate for up to 24 hours. When ready to bake, add the topping and pop it in the oven. While freezing isn’t recommended due to the squash’s high moisture content, you can prep all ingredients a day early for easy assembly.

Frequently Asked Questions
What is squash casserole?
Squash casserole is a classic Southern side dish made from sliced yellow squash, onions, cheese, and a creamy base, topped with buttered crackers or bread crumbs. It’s baked until bubbly and golden, delivering a cozy, comforting bite.
What do you eat with squash casserole?
Squash casserole goes well with roast chicken, ham, turkey, pork chops, barbecue, or even simple salads. It’s a flexible side that fits both holiday tables and casual weeknight dinners.
What is the main ingredient in a casserole?
For Southern Squash Casserole, yellow squash is the star. In general, casseroles have a main ingredient (like squash, potatoes, or pasta), plus a creamy binder and a flavorful topping.
How do you keep squash casserole from getting watery?
To prevent a watery casserole, drain cooked squash and onions thoroughly. Press out extra moisture, use a towel-lined colander, and always bake uncovered. This keeps the filling creamy and the topping crisp.
Conclusion
Southern Squash Casserole is a beloved tradition that brings families together, offering creamy comfort with every bite. By following a few simple steps—choosing fresh squash, draining it well, and baking until golden—you’ll have a dish that never fails to please. This recipe is a favorite for good reason: it’s easy, adaptable, and packed with Southern flavor. Make it your go-to side for holidays, potlucks, or weeknight dinners. One taste, and you’ll understand why it’s a true classic.