This Southern Squash Casserole is a classic recipe that’s perfect for family dinners or holiday meals. Tender yellow squash is coated in a creamy sauce and topped with a buttery cracker topping before baking in the oven. It’s a tried a true winning recipe; you will get asked to make it again and again!

For more easy Side Dish Recipes, be sure to check out my Million Dollar Deviled Eggs, Smothered Green Beans, and Italian Pasta Salad.

A spoon scooping up squash casserole from a baking dish.

I absolutely love old-fashioned recipes, and this Southern Squash Casserole is a true-blue winner that’s been a hit during all of our family holidays for as long as I can remember.

It’s a great way to feature yellow squash, especially during the holidays or in the summer months when it’s at its peak freshness. 

A close up shot of a spoon scooping up squash casserole.

You may have seen different recipes that use a steaming method for the squash. That is always an option, but it’s not how I personally like to cook my squash. I like to sauté it with onion and garlic, then drain off any excess liquid before adding the rest of the ingredients and baking the casserole in the oven.

I have found through recipe testing that sautéing the squash in a bit of butter along with the onion and garlic imparts SO much flavor into the finished casserole, and I highly recommend it!

Ingredients for Easy Squash Casserole

Ingredients in bowls on a marble counter top.
  • Fresh squash – you will need about 4-5 small yellow squash sliced into thin rounds.  
  • Onion and garlic – about 1/2 cup of diced sweet onion and a couple cloves of garlic adds so much flavor to the casserole. 
  • Butter – is used for cooking the veggies. I like to use unsalted butter.
  • Sour cream and mayonnaise – both of these add a rich flavor to the creamy sauce in your squash casserole. Only use FULL FAT sour cream and mayo; it’s worth the extra calories! I also recommend using a good quality mayo and sour cream. I prefer Hellman’s for mayonnaise and Daisy brand for sour cream.
  • Egg – helps bind the ingredients together. 
  • Cheese – I like to use freshly shredded sharp cheddar cheese. I recommend shredding it yourself from a block instead of using pre-shredded. It will melt more smoothly into the casserole.
  • Spices – salt and black pepper are used for seasoning your southern squash casserole.
  • Buttery round crackers – are used for making a delicious cracker crumb topping. It’s always my favorite part of any casserole!  

A full list of ingredients, measurements, and instructions are located in the recipe card below.

How to Make Southern Squash Casserole with Ritz Crackers – Step by Step

A glass bowl of sliced squash with onions.

In a large skillet, melt 2 tablespoons of butter over medium heat. Add the sliced fresh yellow squash, diced onion, and minced garlic. Sauté for 8-10 minutes, or until the squash is tender and the onion is translucent. Remove from the heat and pour the squash mixture into a strainer to drain any excess liquid. Pat the squash all over with paper towels.

A glass bowl of mayo, sour cream, and cheese.

In a large bowl, combine the sour cream, mayonnaise, beaten egg, 1 cup of the shredded cheddar cheese, salt, and black pepper. Mix well.

A glass bowl of sliced squash coated in a sauce.

Add the cooked squash mixture to the bowl and stir gently to combine.

A casserole dish of squash with coated in a sauce.

Pour the squash mixture into a greased 8×8-inch baking dish, spreading evenly.

A casserole dish of squash casserole with cracker topping.

In a separate bowl, melt the remaining 2 Tablespoons of butter. Add the crushed butter crackers along with the remaining shredded cheddar cheese and mix well. Sprinkle the Ritz cracker mixture evenly over the top of the squash casserole.

A casserole dish of squash casserole with cracker topping.

Bake in a 350 degree Fahrenheit preheated oven for 25-30 minutes or until the top is golden brown and the casserole is bubbly around the edges. Remove from the oven and let the casserole cool for 5-10 minutes before serving.

A spoon scooping up squash casserole from a baking dish.

Tips and Notes

  • Choose small yellow squash. Smaller squash have less seeds, are sweeter, and are also easier to cook (and eat!) than larger squash.
  • Cut your squash evenly. I recommend cutting your squash into slices about 1/8 inch thick; not too thin, and not too thick.
  • Use room temperature ingredients. Let your mayo, sour cream, and egg all come to room temperature before mixing together. This helps everything incorporate well; especially when you add the cooked squash to the mix.
  • Drain excess moisture. After cooking your veggies, make sure to drain any remaining liquid from the pan using a colander and pat the squash dry with some paper towels. I don’t get too aggressive with the paper towels; I just like to dab gently all over to help get rid of extra moisture. This will help make sure you don’t end up with a watery casserole.
  • Switch up the cheese. I love to make my squash casserole (and all of my casserole recipes, honestly!) with sharp cheddar cheese. It adds a nice extra bit of flavor, but you could also use mild cheddar. I’ve also seen it made before with a combination of swiss and parmesan cheese.
  • Freezer Instructions: Cover the casserole dish with a layer of plastic wrap and then a layer of aluminum foil and freeze for up to 3 months. If freezing as a make-ahead, prepare the casserole as directed but don’t add the cracker topping. Cover the dish with plastic wrap and aluminum foil and freeze. It is best to thaw the frozen squash casserole in the refrigerator overnight before baking, and it is even better if you can let it come to room temperature before placing it in the oven. Add the cracker mixture to the thawed casserole right before baking.
  • Store leftovers in an airtight container in the fridge for 3-4 days.

FAQs

How do you keep squash casserole from getting watery?

Salting and sautéing the squash before baking in the oven can help to draw out excess moisture. I recommend going a step further by draining your squash after sautéing, then dabbing it gently with paper towels. This will help to keep your squash casserole from turning out watery.

What goes well with squash casserole?

I love to serve squash casserole as part of a holiday spread, especially for Thanksgiving, Christmas, or Easter. It’s also delicious for a weeknight dinner served with Shake and Bake Pork Chops, Crockpot Turkey Breast, or roasted chicken.

Can I make squash casserole ahead of time?

Yes, you can definitely make your casserole ahead of time for the same day or the next day and store it in the refrigerator covered with plastic wrap. Just wait to add the cracker mixture right before baking and follow the baking instructions in the recipe.

A fork scooping up a piece of yellow squash from a casserole.

If you try this recipe, please leave a comment and rating below. I love to hear from you and always appreciate your feedback!

A spoon scooping up squash casserole from a baking dish.
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Recipe: Southern Squash Casserole Recipe

Yield: 8
Prep Time: 15 minutes
Cook Time: 35 minutes
Total Time: 50 minutes
This Southern Squash Casserole is a classic recipe that's perfect for family dinners or holiday meals. Tender yellow squash is coated in a creamy sauce and topped with a buttery cracker topping before baking in the oven. It's a tried a true winning recipe; you will get asked to make it again and again!

Ingredients

  • 4 Tablespoons unsalted butter, divided
  • 4 heaping cups sliced yellow squash, sliced about 1/8 inch thick, from about four small squash
  • 1/2 cup sweet onion, diced
  • 2 large cloves garlic, minced
  • 1/2 cup mayonnaise , full fat, room temperature
  • 1/4 cup sour cream, full fat, room temperature
  • 1 large egg, beaten
  • 2 cups shredded sharp cheddar cheese, divided
  • 1 teaspoon salt
  • 1/2 teaspoon black pepper
  • 1 sleeve Ritz crackers , crushed, about 30 crackers

Instructions
 

  • Preheat oven to 350 degrees Fahrenheit. In a large skillet, melt 2 tablespoons of butter over medium heat. Add the sliced fresh yellow squash, diced onion, and minced garlic. Sauté for 8-10 minutes, or until the squash is tender and the onion is translucent.
  • Remove from heat and pour the squash mixture into a strainer to drain any excess liquid. Allow it to drain for about 5 minutes before patting the squash all over with paper towels.
  • In a large bowl, combine the sour cream, mayonnaise, beaten egg, 1 cup of the shredded cheddar cheese, salt, and black pepper. Mix well.
  • Add the cooked squash mixture to the bowl and stir gently to combine. Pour the squash mixture into a greased 8×8-inch baking dish, spreading evenly.
  • In a separate bowl, melt the remaining 2 Tablespoons of butter. Add the crushed butter crackers along with the remaining shredded cheddar cheese and mix well. Sprinkle the Ritz cracker mixture evenly over the top of the squash casserole.
  • Bake in preheated oven for 25-30 minutes or until the top is golden brown and the casserole is bubbly around the edges. Remove from the oven and let the casserole cool for 5-10 minutes before serving.

Notes

  • Choose small yellow squash. Smaller squash have less seeds, are sweeter, and are also easier to cook (and eat!) than larger squash.
  • Cut your squash evenly. I recommend cutting your squash into slices about 1/8 inch thick; not too thin, and not too thick.
  • Use room temperature ingredients. Let your mayo, sour cream, and egg all come to room temperature before mixing together. This helps everything incorporate well; especially when you add the cooked squash to the mix.
  • Drain excess moisture. After cooking your veggies, make sure to drain any remaining liquid from the pan using a colander and pat the squash dry with some paper towels. I don’t get too aggressive with the paper towels; I just like to dab gently all over to help get rid of extra moisture. This will help make sure you don’t end up with a watery casserole.
  • Switch up the cheese. I love to make my squash casserole (and all of my casserole recipes, honestly!) with sharp cheddar cheese. It adds a nice extra bit of flavor, but you could also use mild cheddar. I’ve also seen it made before with a combination of swiss and parmesan cheese.
  • Freezer Instructions: Cover the casserole dish with a layer of plastic wrap and then a layer of aluminum foil and freeze for up to 3 months. If freezing as a make-ahead, prepare the casserole as directed but don’t add the cracker topping. Cover the dish with plastic wrap and aluminum foil and freeze. It is best to thaw the frozen squash casserole in the refrigerator overnight before baking, and it is even better if you can let it come to room temperature before placing it in the oven. Add the cracker mixture to the thawed casserole right before baking.
  • Store leftovers in an airtight container in the fridge for 3-4 days.
Cuisine: American, Southern
Course: Side Dish
Calories: 352kcal, Carbohydrates: 11g, Protein: 9g, Fat: 30g, Saturated Fat: 12g, Polyunsaturated Fat: 8g, Monounsaturated Fat: 7g, Trans Fat: 0.4g, Cholesterol: 74mg, Sodium: 676mg, Potassium: 221mg, Fiber: 1g, Sugar: 3g, Vitamin A: 655IU, Vitamin C: 10mg, Calcium: 243mg, Iron: 1mg
Did you make this recipe?Let me know! Mention @TheBelleoftheKitchen on Instagram or tag #BelleoftheKitchen.