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Southern Stewed Squash and Onions

This old-fashioned Stewed Squash and Onions recipe features yellow squash and sweet onions braised in a buttery, savory broth. Topped with crispy bacon, there’s no shortage of down-home flavor in this summer-ready Southern side dish! 

a skillet of stewed squash and onions with a dish of chopped bacon, salt and a pepper mill

Who’s excited for summer squash season? I know I am! Yellow summer squash is one of the most versatile veggies out there –perfect for stuffing, baking into a pie, or stewing like in this nostalgic Southern squash and onions recipe. I make this all the time in the summer months. The bouillon paste is my secret sauce for adding incredible flavor to this classic Southern dish.

This simple dish is all about simmering yellow squash and sweet onion together in a rich, buttery broth and topping it off with crispy bacon (because, of course). What you end up with is a deeply satisfying veggie dish that will absolutely have everyone going back for seconds.

In the South, stewed squash and onions often shows up as a side dish at potlucks and Sunday suppers. But if you ask me, a big ol’ scoop with a slice of cornbread is a meal all on its own. It’s that good. So grab a skillet and let’s get this unapologetically Southern classic on the table!

Why You’ll Love It

  • It’s the BEST summer squash recipe. This is a delicious and practical way to use up an abundance of yellow squash during peak summer harvest.
  • Because bacon. It adds an irresistible salty crunch. Not to mention, giving the onions a head start in the drippings builds layers of savory, sweet flavor before the squash joins the party.
  • Perfect for any meal. It’s easy enough for a casual weeknight dinner, yet impressive enough to bring to a family gathering or cookout.

Ingredients you’ll need

ingredients for stewed squash with onions measured out on a counter
  • Yellow squash. This naturally tender and subtly sweet summer squash soaks up all the bacon drippings, butter, and broth, creating that signature soft, stewed texture we know and love.
  • Vidalia onion. These onions melt down beautifully, adding depth to the dish, but any sweet onion or even yellow onions will do.
  • Center-cut bacon. The rendered bacon fat provides a smoky, salty base to sauté your onions and squash while the crispy bacon adds texture. Pancetta also works well here. 
  • Better Than Bouillon chicken paste. When dissolved in warm water, it creates a rich, savory broth. If you substitute ready-made chicken broth or stock, just taste as you go since salt levels vary. This is my secret sauce to making the most flavorful stewed squash!
  • Butter. Adds richness and helps emulsify the broth, bringing a silky finish to the dish. Don’t skip it!
  • Sugar. A pinch of sugar enhances the natural sweetness of the squash and onions. It’s totally optional, but worth it, especially if your squash isn’t at peak ripeness.
  • Seasonings. Just salt and freshly cracked pepper! Classic and essential.

How to make stewed squash and onions

sliced squash on a cutting board and in a bowl
sliced onions on a cutting board
bacon cooking in a skillet
onions sauteeing in a skillet
squash and onions cooking in a skillet

Step 1: Prep the onions and squash. Slice the squash, discarding both ends, slicing the smaller ends into 1/4″ rounds and the larger sections into half moons. Peel and half the onion and cut into ¼-inch slices. 

Step 2: Cook the bacon. Place the bacon in a large, cold skillet. Turn the heat to medium and cook the bacon a few minutes per side until crispy. Remove the bacon and set it aside on a paper towel-lined plate.

Step 3: Sauté the onions and squash. Add the sliced onions to the pan with the hot bacon fat and sauté until they start to soften, about 3 minutes. Add the butter and stir until melted, then and the squash and cook, stirring occasionally, until it starts to soften around the edges.

Step 4: Simmer. Dissolve the bouillon paste in warm water, then add it to the skillet along with the sugar (if using). Cover the skillet, and let it simmer for 8 minutes more, stirring occasionally. Uncover and cook for 5-6 minutes more to evaporate some of the liquid, or to the desired tenderness.

a jar of bouillon pasta and a dish of bouillon with a spoon

Step 5: Finish and serve. Meanwhile, chop the cooked bacon into bite-sized pieces. When the squash is tender, season with salt and black pepper to taste, sprinkle the bacon over the top, and enjoy!

side view of cooked southern squash with onions

Recipe tips and FAQs

  • Don’t skip the cold skillet bacon trick. Starting the bacon in a cold skillet and slowly bringing it to temp gives you more rendered fat and better crunch. 
  • Try to cut the squash and onion evenly. Aim for ¼-inch thick pieces so they stew at the same rate without turning to mush.
  • Stir the squash and onions occasionally but gently. Overmixing can cause the veggies to break down too much and get mushy. Let everything cook undisturbed between stirs to maintain texture.

Variations

  • Add extra Southern flair – Sprinkle a handful of crushed Ritz crackers over the top along with the bacon for some buttery crunch that just screams classic Southern comfort food.
  • Make it cheesy – Sprinkle freshly shredded cheese like mozzarella, cheddar, Parmesan, or even pepper jack over the top during the last minute or two. Cover the skillet to help it melt down.
  • Toss in more veggies – Like zucchini, tomato, or red bell pepper. These all complement the squash and onions beautifully. Like a bit of heat? Add diced jalapeños to the mix. 
  • Garnish with fresh herbs – For a garden-fresh, colorful finish, sprinkle chopped fresh basil, parsley, or chives over the top just before serving.
Can I make this dish vegetarian?

Yes! You can easily swap in Better Than Bouillon vegetable base (or ready-made vegetable broth). As for the bacon, you can either substitute vegan bacon or skip it altogether. In this case, sauté your squash and onions in butter or olive oil instead of bacon fat, and for that savory, smoky depth you’d typically get from bacon, add a pinch of smoked paprika. 

How do I keep the squash from turning mushy?

Avoid overcooking and over-stirring. Squash has a high water content and softens quickly, so cook it just until tender and stir gently. Uniform slicing and moderate heat also help maintain a pleasant, slightly toothsome texture.

How do I know when the squash is done cooking?

The squash is ready when it’s tender, but still holds its shape. You should be able to easily pierce it with a fork without it falling apart.

Serving suggestions 

Stewed squash and onions make a great side for almost any cozy main course –think fried chicken, mini meatloaves, pork chops, BBQ pineapple chicken, or pulled pork

Storing and freezing

Storing: Store leftover squash and onions in an airtight container in the fridge for up to 3 days. Reheat gently in a skillet or microwave until warmed through.

Freezing: You can freeze leftovers, but the texture may become quite soft upon thawing. If that doesn’t bother you, let it cool completely before freezing in a freezer-safe container for up to 2 months. Thaw overnight in the fridge before reheating.

If you love this Southern-style stewed yellow squash and onions recipe, I would be so grateful if you could leave a 5-star 🌟 rating in the recipe card below. I love reading your comments and feedback!

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stewed squash in a white skillet
close up of stewed squash in a white deep skillet with bacon and onions

Southern Stewed Squash and Onions

Summer yellow squash is pan-fried with onions, then stewed in a flavorful broth and topped with crispy chopped center-cut bacon.
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Course: Side Dish
Cuisine: American
Prep Time: 5 minutes
Cook Time: 25 minutes
Total Time: 30 minutes
Servings: 6
Calories: 137kcal
Author: Amee

Equipment

  • Large skillet

Ingredients

  • 4 yellow squash about 2 pounds
  • 1 sweet Vidalia onion
  • 6 slices bacon
  • 1 tbsp butter
  • ¼ cup warm water
  • 1 tsp Better Than Bouillon chicken paste
  • ¼ tsp sugar
  • salt and freshly cracked pepper to taste

Instructions

  • Slice the squash, discarding both ends, slicing the smaller ends into 1/4" rounds and the larger sections into half moons. Peel and half the onion and cut into ¼-inch slices. 
  • Place the bacon into a large cold skillet (to properly render the fat), then turn the heat up to medium. Cook the bacon until desired crispiness. Remove the bacon and set aside on a paper towel-lined plate.
  • Add the sliced onions to the pan with the hot bacon fat and sauté until they start to soften, about 3 minutes. Add the butter and stir until melted, then add the squash and cook, stirring occasionally, for 6 minutes more until it starts to soften around the edges.
  • Stir the chicken base into the water until dissolved, then add it to the skillet. Add the butter and a pinch of sugar (optional but brings out the sweetness of the squash). Cover and continue cooking for 8 minutes more, stirring occasionally.
  • While the squash simmers, chop the bacon into small pieces.
  • Uncover and cook for 5-6 minutes more to evaporate some of the liquid, or to desired tenderness.
  • Season with salt and pepper, to taste. Sprinkle the crumbled bacon on top just before serving, or serve it on the side.

Nutrition

Calories: 137kcal | Carbohydrates: 7g | Protein: 5g | Fat: 11g | Saturated Fat: 4g | Polyunsaturated Fat: 2g | Monounsaturated Fat: 4g | Trans Fat: 0.1g | Cholesterol: 20mg | Sodium: 167mg | Potassium: 413mg | Fiber: 2g | Sugar: 4g | Vitamin A: 328IU | Vitamin C: 24mg | Calcium: 26mg | Iron: 1mg
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Amee Livingston
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