Caramelized Onion Butter is rich, creamy, and packed with sweet onion flavor! Caramelized onions are mixed into softened butter to make a tasty spread perfect for many meals. Spread it on bread, melt it over a steak, or add a little to your favorite veggies!

For another flavorful option, my Cowboy Butter is full of garlic, herbs, and a little kick. Both are great ways to make everyday meals even more delicious!

Jar of Caramelized Onion Butter on a wooden table with fresh bread.
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Ingredients & Substitutions

  • Unsalted butter: You will need butter for both caramelizing the onions and mixing the finished butter. The butter for mixing should be softened to room temperature. You can use salted butter if that is what you have; just reduce the added salt and season to taste.
  • Extra virgin olive oil: Helps the onions cook slowly. You can use another neutral cooking oil if needed.
  • Yellow onion: One large yellow onion gives the butter its sweet, rich flavor. You can use a white or sweet onion, too, but the flavor may vary slightly.
  • Kosher salt: Helps bring out the onions’ flavor and seasons the finished butter. If using table salt, start with less and adjust as needed.
Close up of a jar of Caramelized Onion Butter.

FAQs

Can I make Caramelized Onion Butter ahead of time?

Yes! You can make it a few days ahead and keep it in the refrigerator until you are ready to use it. The flavor has time to develop as the onions and butter sit together.

Do I have to use a food processor?

No. A food processor makes it easy to chop the caramelized onions into tiny pieces, but you can finely chop them by hand with a knife. Let the onions cool completely before mixing them into the butter.

Why do the caramelized onions need to cool completely?

The onions need to cool completely so they do not melt the softened butter. They should also be cooked until most of the excess moisture has evaporated. This helps the finished butter stay thick and creamy.

Can I freeze Caramelized Onion Butter?

Yes! Shape the butter into a log, wrap it tightly, and freeze it for up to 3 months for the best quality. Thaw it in the refrigerator before using.

Can I add other herbs or seasonings?

Absolutely! Fresh thyme or rosemary would pair nicely with the sweet onions. You could also add a little black pepper or garlic, depending on your taste.

Butter knife scooping up a portion of Caramelized Onion Butter.

How To Use Caramelized Onion Butter

Caramelized Onion Butter adds rich, savory flavor to so many dishes! Here are a few easy ways to use it:

Tip: Let the butter soften slightly before spreading, or add a cold pat to hot food and let it melt right in.

Jar of Caramelized Onion Butter with some removed on a wooden table.

How To Store Caramelized Onion Butter

Refrigerator: Store Caramelized Onion Butter in an airtight container or wrap it tightly in parchment paper or plastic wrap. Keep it refrigerated for up to 1 week.

Freezer: For longer storage, shape the butter into a log and wrap it tightly in plastic wrap, then place it in a freezer-safe bag or container. Freeze for up to 3 months for the best quality. Thaw it in the refrigerator before using.

To serve: Let the butter sit at room temperature briefly to soften before spreading. Do not leave it out for more than 2 hours.

Caramelized Onion Butter in a black bowl on a wooden table surrounded by toasted baguettes from overhead.
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Caramelized Onion Butter

Prep Time 10 minutes
Cook Time 45 minutes
Total Time 55 minutes
Caramelized Onion Butter is creamy, savory, and full of sweet, golden onions! It is easy to make and adds delicious flavor to bread, steak, chicken, vegetables, and so much more.

Ingredients

Caramelized Onions

  • 2 tablespoons unsalted butter
  • 1 tablespoon extra virgin olive oil
  • 1 large yellow onion, finely diced (about 2 cups)
  • ¼ teaspoon kosher salt

Onion Butter

  • 1 cup (2 sticks / 227 g) unsalted butter, softened
  • ¼ teaspoon kosher salt, plus more to taste

Instructions

Caramelize the Onions

  • In a large skillet over medium-low heat, melt the 2 tablespoons butter with the olive oil.
  • Add the diced onion and ¼ teaspoon kosher salt. Stir until the onions are evenly coated.
  • Cook for 35 to 45 minutes, stirring occasionally, until the onions are very soft and deep golden brown. As they begin to caramelize, stir more frequently to prevent burning.
  • If browned bits begin to build up on the bottom of the skillet before the onions are fully caramelized, add 1 tablespoon water and scrape the browned bits from the pan. Continue cooking until the water has completely evaporated. Repeat only as needed.
  • Once the onions are deeply caramelized, cook for another 1 to 2 minutes, stirring frequently, until no excess moisture remains. The onions should be dark golden, soft, and jammy, but not wet.
  • Transfer the onions to a plate and let them cool completely.

Make the Onion Butter

  • Add the cooled onions to a small food processor. Pulse a few times until they are very finely chopped, but not completely smooth. You should have about ¼ cup of finely chopped caramelized onions. You want tiny pieces of onion throughout the butter.
  • In a medium bowl, fold the processed onions into the softened butter with the remaining ¼ teaspoon kosher salt.
  • Taste and add more salt if needed.
  • Serve immediately while softened, or transfer the butter to parchment paper or plastic wrap. Shape into a log, wrap tightly, and refrigerate until firm.

Did you make this recipe?

You can tag me at @iamhomesteader.

Caramelized Onion Butter in a black bowl on a wooden table surrounded by toasted baguettes from overhead.

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