Southern Squash Casserole

Category: Recipes That Started My Cooking Journey

Cook sliced yellow squash with onions, mix with cheese and cream soup, top with buttery crackers, then bake for 38 minutes until golden and bubbly.
Clare Recipes
Created By Lily Chen
Updated on Sat, 31 May 2025 14:19:20 GMT
A plate of food with a fork on it. Save
A plate of food with a fork on it. | lilicooks.com

Southern squash casserole brings the essence of traditional comfort food to your table through layers of tender yellow squash, creamy cheese sauce, and a golden buttery cracker topping that creates textural perfection in every bite. This beloved side dish transforms humble summer squash into something extraordinary by combining it with rich, savory ingredients that have made it a staple at Sunday dinners and holiday gatherings for generations. Whether you're feeding a crowd or creating weeknight comfort, this casserole delivers the warm, satisfying flavors that define authentic Southern cooking.

I learned this recipe from my Southern grandmother who made it every summer when yellow squash was abundant in her garden. The combination of tender squash with creamy cheese and that irresistible buttery cracker topping has become one of my most requested dishes at family gatherings. What I love most is how it transforms simple, affordable ingredients into something that feels special enough for holidays yet comforting enough for everyday meals.

Premium Ingredient Guide

  • Fresh yellow squash (3 pounds): Choose firm, unblemished squash with glossy skin; smaller squash tend to be more tender with fewer seeds
  • Sweet onion (1 small, chopped): Vidalia or other sweet varieties add aromatic depth without overwhelming the delicate squash flavor
  • Extra virgin olive oil or butter (1 tablespoon): For sautéing vegetables; butter adds richness while olive oil provides cleaner flavor
  • Sharp cheddar cheese (1 cup shredded): Freshly grated melts better than pre-shredded; sharp variety provides essential tangy depth
  • Sour cream (1/2 cup): Adds tangy richness and creamy texture; full-fat variety provides best consistency and flavor
  • Large fresh egg (1 whole, beaten): Acts as binder to hold casserole together; room temperature egg incorporates more easily
  • Cream of chicken soup (10.5-ounce can): Creates creamy base; cream of mushroom works as alternative for different flavor profile
  • Ritz crackers (1 sleeve, crushed): Provides signature buttery, crispy topping; substitute with similar buttery crackers if needed
  • Unsalted butter (3 tablespoons, melted): Binds cracker topping and adds rich flavor; unsalted allows better seasoning control
  • Fine sea salt and freshly ground black pepper: Essential for enhancing all flavors throughout the casserole

Perfect Preparation Method

Preparing Optimal Base

Preheat oven to 350°F and generously grease a 9x13-inch baking dish to prevent sticking during the extended cooking time. Choose glass or ceramic dish for even heat distribution and attractive presentation.

Cooking Squash Properly

Slice yellow squash into uniform 1/4-inch rounds for consistent cooking, then heat oil or butter in large skillet over medium heat. Add squash and chopped onion, cooking for 10 minutes while stirring frequently until squash becomes tender and onions turn translucent. Drain any excess liquid thoroughly to prevent watery casserole.

Creating Creamy Mixture

In a large mixing bowl, combine the cooked squash and onions with cream soup, sour cream, shredded cheese, beaten egg, salt, and pepper. Mix thoroughly until all ingredients are well incorporated and the mixture appears cohesive and creamy throughout.

Assembling Layers

Transfer the squash mixture to the prepared baking dish, spreading evenly to ensure uniform cooking. The surface should be relatively level for proper topping distribution and consistent browning.

Preparing Signature Topping

Crush Ritz crackers into coarse crumbs using a food processor or by placing them in a sealed bag and crushing with a rolling pin. Mix crushed crackers with melted butter until evenly coated, then sprinkle uniformly over the casserole surface.

Optimal Baking Process

Even Heat Distribution

Bake for 35-40 minutes on center oven rack until the top turns golden brown and the edges bubble actively. The casserole should be set throughout when gently shaken, indicating proper cooking completion.

Monitoring Doneness

Look for golden-brown cracker topping, bubbling edges, and slightly firm center when lightly pressed. The internal temperature should reach about 165°F when tested with thermometer for food safety.

Perfect Finishing

Allow casserole to rest for 5-10 minutes before serving, which helps it set properly and prevents excessive bubbling when cut. This resting period also prevents burns while allowing flavors to settle.

A plate of food with a fork on it. Save
A plate of food with a fork on it. | lilicooks.com

Through years of making this casserole, I've learned that moisture control is crucial for success. The squash must be cooked until tender but not waterlogged, and any excess liquid must be drained before combining with other ingredients. The cracker topping should be coarse enough to provide texture while fine enough to create even coverage.

Creative Variations

Transform this classic recipe by incorporating additional ingredients that complement the squash base beautifully. Crumbled bacon or diced ham adds smoky, savory depth that makes the casserole more substantial and appealing to meat lovers.

For cheese variations, try mixing sharp cheddar with Monterey Jack for milder flavor, or add Parmesan for extra sharpness and complexity. Cream cheese can be substituted for some of the sour cream to create ultra-rich versions perfect for special occasions.

Spice additions like cayenne pepper, paprika, or fresh herbs such as thyme or sage create interesting flavor profiles while maintaining the traditional Southern character that makes this dish so beloved.

Serving Excellence

This versatile casserole pairs beautifully with traditional Southern main courses like fried chicken, barbecued ribs, or glazed ham, where its creamy richness complements savory, smoky flavors perfectly. The mild squash base makes it an ideal accompaniment that doesn't compete with bold main dishes.

For holiday service, present in the baking dish family-style, allowing guests to serve themselves generous portions. The golden, bubbly appearance creates attractive presentation that fits both casual and formal dining situations.

Consider serving alongside other traditional Southern sides like cornbread, green beans, or mac and cheese for complete comfort food experiences that celebrate regional culinary traditions.

Storage Solutions

Store leftover casserole covered in the refrigerator for up to 4 days, where it actually improves in flavor as ingredients continue to meld together. The texture may firm slightly during storage, which is completely normal.

For reheating, cover with foil and warm in 325°F oven until heated through, or microwave individual portions for 1-2 minutes. Oven reheating maintains better texture, especially for the cracker topping.

This casserole freezes well before baking - assemble completely without topping, wrap tightly, and freeze for up to 2 months. Add cracker topping just before baking from frozen, extending cooking time by 15-20 minutes.

Make-Ahead Magic

This recipe excels at advance preparation, perfect for holiday entertaining when oven space is precious. Assemble the entire casserole up to 24 hours before baking, cover tightly and refrigerate until ready to cook.

For ultimate convenience, prepare the squash mixture and cracker topping separately up to 2 days ahead, then combine and bake when ready to serve. This approach maintains optimal texture while providing maximum flexibility.

The make-ahead nature makes it ideal for potluck contributions - assemble at home, transport covered, and bake at the destination for fresh, hot results that impress every time.

Texture Perfection

The finished casserole should have a golden, crispy cracker topping that contrasts beautifully with the creamy, tender squash interior. The squash should be fork-tender without being mushy, while the cheese creates rich binding throughout.

Visual cues include active bubbling around edges, golden-brown topping, and slightly firm center that springs back when gently pressed. The casserole should hold its shape when served but not be dry or crumbly.

If the topping browns too quickly before the center is heated through, tent with foil and continue baking until the internal temperature reaches proper doneness throughout.

A plate of food with a fork on it. Save
A plate of food with a fork on it. | lilicooks.com

This Southern squash casserole has become my go-to side dish for any occasion because it consistently delivers the comforting flavors and satisfying textures that define great Southern cooking. The combination of simple ingredients transformed through traditional techniques creates something that feels both nostalgic and timeless, proving that the best recipes are often those passed down through generations of home cooks who understood how to create maximum satisfaction from humble ingredients. Every time I serve it, I'm reminded of summer afternoons in my grandmother's kitchen and the power of food to connect us to our roots and create lasting memories.

Recipe FAQs

→ Can I use other types of squash for this recipe?
Yellow squash works best, but you can use zucchini in a pinch. Just make sure to drain any extra liquid since zucchini tends to be more watery.
→ How do I keep my casserole from being watery?
The key is draining the cooked squash well before mixing it with the other ingredients. Let it sit in a colander for a few minutes after cooking.
→ Can I make this casserole ahead of time?
Yes! Assemble everything except the cracker topping, cover and refrigerate. Add the topping and bake when ready to serve.
→ What can I substitute for Ritz crackers?
Buttery round crackers work great, or you can use crushed cornflakes or breadcrumbs mixed with butter for a different texture.
→ How do I know when the casserole is done?
Look for a golden brown top and bubbling around the edges. The center should be set and not jiggly when you gently shake the dish.
→ Can I freeze this casserole?
You can freeze the unbaked casserole without the topping for up to 2 months. Thaw overnight and add fresh topping before baking.

Southern Squash Casserole

Tender yellow squash baked with cheese and cream soup, topped with buttery crushed crackers for the perfect side dish.

Preparation Time
20 min
Cooking Time
38 min
Overall Time
58 min
Created By: Lily Chen

Category: Grandma's Legacy

Skill Level: Moderate

Cuisine Type: Southern American

Output: 9 Serves

Dietary Options: Vegetarian

Ingredients

→ Main ingredients

01 3 pounds yellow squash, sliced into ¼-inch rounds
02 1 small onion, finely chopped
03 1 tablespoon olive oil or butter
04 1 teaspoon salt
05 ½ teaspoon black pepper

→ Creamy filling

06 1 cup sharp cheddar cheese, shredded
07 ½ cup sour cream or mayonnaise
08 1 large egg, beaten
09 1 can (10.5 oz) cream of chicken or mushroom soup

→ Crispy topping

10 1 sleeve Ritz crackers, crushed
11 3 tablespoons butter, melted

Steps

Step 01

Preheat your oven to 350°F and grease a 9x13-inch baking dish really well so nothing sticks.

Step 02

Heat your oil or butter in a large skillet over medium heat. Add the sliced squash and chopped onions, then cook for about 10 minutes, stirring often, until the squash gets nice and tender. Drain off any extra liquid that builds up.

Step 03

In a big bowl, mix together your cooked squash and onions with the cream soup, sour cream, shredded cheese, beaten egg, salt, and pepper. Stir everything until it's well combined and creamy.

Step 04

Pour your squash mixture into the greased baking dish and spread it out evenly so it cooks uniformly.

Step 05

In a small bowl, mix your crushed crackers with the melted butter until they're well coated. Sprinkle this mixture evenly over the top of your casserole.

Step 06

Pop it in the oven for 35-40 minutes, until the top turns golden brown and you can see it bubbling around the edges. That's when you know it's perfectly done!

Tips

  1. This casserole is perfect for using up abundant summer squash when it's in season and at its best.
  2. You can assemble this dish earlier in the day and bake it just before serving - great for entertaining!
  3. Try adding cooked bacon or diced ham to make it heartier, or mix different cheeses like Monterey Jack for variety.
  4. For a little heat, add a pinch of cayenne pepper or a few dashes of hot sauce to the mixture.
  5. Make sure to drain any excess liquid from the cooked squash so your casserole doesn't turn out watery.

Required Tools

  • 9x13-inch baking dish
  • Large skillet
  • Large mixing bowl
  • Small bowl for topping

Allergy Information

Always check each ingredient for allergens, and consult a medical professional if unsure.
  • Contains gluten (crackers)
  • Contains dairy (cheese, sour cream, butter)
  • Contains eggs

Nutritional Information (per serving)

These details are shared for general guidance and don’t replace professional advice.
  • Calories: 245
  • Fats: 16 g
  • Carbohydrates: 18 g
  • Proteins: 8 g