Sharp cheddar and gruyere make the sauce in this squash casserole richer than the usual version, and sautéing the yellow squash first keeps it from turning watery once it bakes. Sour cream and mayonnaise add tang, and a buttery Ritz cracker topping gives it the crunch people expect from a Southern squash casserole. Prep and bake take about 40 minutes total, and it holds up well for holiday tables or potlucks.

The Squash Casserole That Skips the Can
Most squash casserole recipes rely on a can of cream of chicken or cream of mushroom soup to hold the sauce together. This one skips the can entirely and builds the sauce from real ingredients instead, so nothing here tastes artificial.
Squash holds a surprising amount of water, which is exactly why so many versions turn out soupy once they’ve baked. Cooking it down and draining it before it goes into the dish solves that problem, a step a lot of recipes leave out. This is the version that holds its shape on the plate and doesn’t run into your stovetop candied yams. The same idea works for broccoli. If you steam it first before it goes in the oven, my baked broccoli cheese casserole without rice stays tender instead of turning to mush.
Featured reader review
“EXCELLENT squash casserole! Sautéing the squash makes a huge difference. The sauce is silky and so very good, adding Gruyere cheese took it to the next level! This I will be my go to squash casserole recipe.”
Teresa
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Why the Sauce Has a Little Tang
Squash casserole is one of those dishes almost every Southern family grew up with, since summer squash was always overflowing in the garden, and it almost always showed up with a Ritz cracker topping. I wanted to bring back that same dish without the watery texture I remembered from some versions.
All mayonnaise made the sauce too tangy for my taste, so I use sour cream for a richer flavor and only enough mayo to round it out. It’s the same sautéing trick I use in my creamy pasta and squash casserole with a panko crumb topping.

Ingredients That Replace the Soup Can

How This Squash Casserole Comes Together
Step 1: Pre-cook the squash.



Step 2: Prepare the creamy sauce.


Step 3: Prepare the topping and bake.


You can assemble this before hand and bake right before serving.
This squash casserole holds up next to any version people grew up with, and the sour cream and cheddar-gruyere blend give it more flavor than the classic can-of-soup version ever had. It’s one to keep in your rotation of vegetable casserole recipes for the next holiday table.
If you loved this recipe, give it a star ⭐️⭐️⭐️⭐️⭐️ rating! Also, snap a picture of your finished dish and share it with me on Instagram using the hashtag #butterandbaggage and tagging me @butterandbaggage.
Squash Casserole with Ritz Crackers and Sour Cream
Equipment
Ingredients
- 1 ½ tablespoons butter
- 6 cups yellow squash about 3 medium-sized squash
- ½ medium vidalia onion chopped
- 1 teaspoon salt
- 1 egg lightly beaten
- 4 ounces sharp cheddar cheese ½ cup shredded
- 2 ounces gruyere ¼ cup shredded
- ½ cup sour cream
- ¼ cup mayonnaise
- 1 teaspoon fresh thyme
TOPPING
- ½ sleeve Ritz crackers
- 2 tablespoon butter
- 2 tablespoon parmesan cheese finely grated
- 1 teaspoon parsley chopped
Instructions
- Preheat the oven to 350º. Lightly butter a 2 quart baking dish.
- Melt 1 ½ tablespoons of butter in a large skillet. Add sliced squash and chopped onions and ½ teaspoon salt. Cook over medium heat, stirring often until the squash is no longer firm but is not mushy. This will take about 10 minutes depending on how much moisture is in the squash.
- Add the squash mixture to a colander to drain any additional liquid.
- In a large bowl, whisk together the eggs, sour cream, mayonnaise, cheddar and gruyere, thyme, ½ teaspoon salt and pepper. Gently fold in the partially cooked squash and onions. Spoon into the prepared baking dish.
- În a small bowl or measuring cup, melt the butter and add crushed crackers, parmesan and parsley. Mix with a fork then sprinkle over the top of the squash.
- Bake for 20 minutes or until the top is golden brown.
Barbara’s Tips + Notes
- Cook the squash until it’s just no longer firm and slice it evenly so it all cooks at the same rate, this is what keeps the casserole from turning watery.
- Zucchini, yellow squash, or a mix of both works here.
- Refrigerate leftovers for up to 3-4 days. This doesn’t freeze well since the sour cream and mayonnaise sauce can separate once thawed.





DEBRA PARMER says
what happened to the other 1 1/2 T butter of the 3 T
Barbara Curry says
It only needs 1 1/2 tablespoons, I must have forgotten to change the final version when testing this. Thanks for catching that.
Teresa says
EXCELLENT squash casserole! Sautéing the squash makes a huge difference. The sauce is silky and so very good, adding Gruyere cheese took it to the next level! This I will be my go to squash casserole recipe.
Barbara Curry says
I’m glad you found the recipe and it’s the perfect time when squash is everywhere!
Lynn Clark says
Barbara, this casserole was a great hit with my family! And that was a surprise for a couple of people. I used a combination of yellow summer squash & zucchini from the farmer’s market & deviated from the recipe slightly with a bag of Sargento shredded Cheddar cheese blends that included Wisconsin sharp, New York sharp, California mild & Vermont Sharp Cheddar cheeses plus freshly grated Parmesan in the Ritz cracker topping. It was splendid! Another time I will use the Cheddar & Gruyere blend recommended in the recipe – an unbeatable combo in my opinion also. My daughter said this is the first squash casserole that she has ever enjoyed. That makes it a true success for her! Thank you so much for this recipe.
Barbara Curry says
Wow, so glad she liked it! I change the cheese combo with whatever I happen to have in the fridge.
Savannah Seber says
This was the best squash casserole recipe I have ever tried. I did not have fresh thyme so I used dried, didn’t have gruyere, so I used extra cheddar and Parmesan, I did add garlic powder, and doubled the cracker mixture. I made this 5 days ago and still have some left in the fridge. I’m considering heating it up and still eating some! Definitely will be making this again as I have an abundance of squash!
Barbara Curry says
That makes me so happy to hear! I love that you made it work with what you had, and those swaps sound really good. Extra cheddar and Parmesan is a great combination. Five days later and still tempting you from the fridge, that’s the best kind of compliment a recipe can get!