Creamy squash casserole doesn’t have to be watery or bland, and this recipe proves it. Made with sautéed yellow squash, onions, sour cream, mayonnaise, and a blend of cheeses, this Southern squash casserole bakes up rich and flavorful with a tender, not mushy, texture. Finished with a buttery Ritz cracker topping, it’s an easy side dish that works just as well for holiday meals as it does for potlucks and family dinners.

A sour cream squash casserole with Ritz crackers checks every box on your side dish list: It’s incredibly flavorful, layered with a tangy cheesy sauce, and has a crunchy Ritz cracker topping.
With summer squash showing up in the farmer’s market and in summer gardens, it’s always nice to have a few squash recipes to pull out to go with some BBQ ribs or as part of your Thanksgiving feast. This Southern squash casserole recipe has a sour cream-mayo cheese sauce that really sets it apart.
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
Some people shy away from squash casseroles because the texture can be mushy. This one doesn’t get soggy because you partially cook the squash before you assemble the casserole, a secret technique for retaining a superior texture. It’s a technique I use in my creamy pasta and squash casserole that uses the same pre-cooking method. By partially cooking it first, it reduces the liquid.
Warm Up Your Winter: Southern Classics!
FREE EMAIL BONUS: Southern staples made simply & cozy
This creamy casserole might look plain but with a sauce made up of sour cream, mayo, parmesan, Gruyere, and cheddar it’s much better than the one your grandmother made. It’s an updated version of an old-fashioned recipe that’s easy to put together.

Perfect for a show-stopping holiday side dish, this might just be your new signature Thanksgiving recipe. Keep it in mind for your next potluck. If you’ve ever thought of squash as boring, you won’t any longer!
What You’ll Need

How to make Squash Casserole
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 is one of those side dishes people remember. Creamy, comforting, and topped with just the right amount of crunch, it fits in anywhere from a casual family dinner to a 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.
Creamy Squash Casserole with Ritz Cracker Topping
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
Equipment
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
- To prevent a watery casserole, the squash shouldn’t be overcooked.
- Let the Ritz crackers soak up the butter before putting them on top of the casserole.
- Try to keep the slices of squash the same thickness.
- You can use zucchini or yellow squash or a combination of both.






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.