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Southern Squash Casserole is a comforting side dish casserole, often served during the holidays, with tender, cooked yellow squash, onions, sour cream, and cheddar cheese topped with crushed buttery Ritz crackers.
Growing up this cheesy squash casserole was the only way I would eat squash. We had it on holidays including Thanksgiving, Christmas, and Easter, as well as for summer bbq and picnics, or church potluck dinners.

This yellow squash casserole is also a fresh summer favorite, when fresh yellow squash is abundant, and a classic holiday side dish, especially for Thanksgiving, Christmas, and Easter dinners.
If you grew up in the South, then you know what I’m talking about. This old fashioned squash casserole was a staple for big gatherings.
I remember the tender squash in a creamy sauce topped with the crunchy buttery cracker topping. It was so good.

I think that the Southern Squash Casserole is one of those Southern Recipes that has been served for decades by generation after generation. Probably because yellow squash grows abundantly in the South during the summer.
However, this Squash casserole is not just for summer. It makes a great side dish for Thanksgiving and other holiday dinners as well.

Another reason the Southern Squash Casserole is so popular is that it is easy to make. Just saute fresh yellow squash in butter or oil with some onions until both are tender.
Then combine with cheesy, creamy sauce.

Place into a casserole dish.
Top with crushed buttery crackers.

Then drizzle melted butter on top so you have a buttery golden crunchy topping on top of the casserole.

Bake the Southern Squash Casserole in the oven until the casserole is heated through and the topping is a light golden brown color.
Yellow Squash Casserole Variations
- All Cheddar Classic – If you prefer a completely mild, old fashioned, traditional flavor profile, you can omit the Pepper Jack Cheese, and use a full cup of shredded sharp cheddar cheese instead.
- Extra Creamy Option – For an ultra smooth and creamy texture, you can add 2 ounces of softened cream cheese directly into your sour cream mixture before folding in the squash.
- The Mayonnaise Alternative – My recipe features a sour cream base. However, you can substitute an equal amount of mayonnaise or use a 50/50 blend of both sour cream and mayonnaise.
- Slow Cooker (Crockpot) Method: This is especially helpful for holidays like Thanksgiving because it frees up precious oven space when you make it ahead. Transfer your prepared squash and cheesy sour cream filling to a slow cooker. Cover and cook on low for 2 – 3 hours. To get a crunchy topping without an oven, toast your Ritz crackers in a skillet with 1 tablespoon of butter on the stovetop and sprinkle them over the top of the casserole right before serving.
What To Serve with Southern Squash Casserole?
- Sweet Potato Casserole with Marshmallows OR Sweet Potato Casserole with Pecan Topping – Pair this Southern Squash Casserole with your Thanksgiving roast turkey or holiday ham and my sweet potato casserole with your favorite topping, either marshmallows or pecans!
- Cheesy Scalloped Potatoes – For a heavenly holiday creamy, cheesy side dish, make this scalloped potatoes recipe.
- Tomato Zucchini Pie – If you are swimming in fresh summer produce, this yellow squash casserole recipe pairs beautifully with Grilled Chicken, and my Tomato Zucchini Pie.
- Instant Pot Dr Pepper BBQ Pulled Pork – For a comforting, effortless family meal, it makes the absolute perfect companion to the smoky flavors of my sweet and tangy Dr Pepper BBQ Pulled Pork for a quick Southern BBQ Dinner.
Frequently Asked Questions (FAQs)
Yes, It’s the ultimate make ahead Thanksgiving side dish! You can slice and sauté the yellow squash and mix it with the sour cream filling up to 24 hours in advance. Store it covered in the refrigerator. On Thanksgiving Day, remove the casserole from the fridge, and let it sit on the counter for 20 – 30 minutes. To optimize the oven schedule, slide the casserole into the oven while the turkey is resting on the counter, before carving.
Sour cream gives it that tangy flavor and creamy texture. However, you can substitute an equal amount of mayonnaise or full-fat plain Greek yogurt.
To prevent a soggy casserole on the holiday table, make sure to thoroughly drain your cooked summer squash before mixing it with the sour cream, eggs, and cheese.
Yes! While it is a beloved holiday tradition at Thanksgiving, Christmas, and Easter, this recipe is one of the best ways to use up a bumper crop of fresh yellow squash straight from your summer garden or the local farmers market.
Yes! You can easily turn this into a Southern Zucchini Casserole by replacing either half ,for a Zucchini Summer Squash Casserole, or all of the yellow squash with zucchini. Since zucchini releases a similar amount of moisture as yellow squash, just follow the same directions in sautéing and draining the zucchini to keep your casserole creamy and delicious.
Then gather all your closest family and friends and serve this popular Southern Squash Casserole. It will be a hit. Be sure to leave a review if you made the recipe.
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Recipe
Ingredients
- 2 tablespoons butter
- 5 yellow squash sliced into 1/4″ slices
- 1 medium onion chopped
- Salt and pepper to taste
- ¼ teaspoon cayenne pepper optional
- 2 eggs
- 1/2 cup shredded cheddar cheese
- 1/2 cup Pepper Jack cheese
- 8 ounces sour cream
- 2 tablespoons butter
- 1 sleeve buttery crackers like Ritz crackers
- 2 Tablespoons melted butter
Instructions
- Preheat oven to 350º F.
- In a large skillet, melt 2 tablespoons butter over medium heat. Add the sliced yellow squash, onions and salt, pepper and cayenne (optional) and cook until tender.
- In a large bowl, whisk together eggs, cheese, and sour cream. Add cooked squash and onions to egg mixture and stir well to combine.
- Spray a 9×13 casserole dish with cooking spray and pour squash casserole mixture into the baking dish. Spread the crushed crackers evenly over the top and drizzle melted butter over the crackers. Bake in a preheated oven for about 30 to 40 minutes, or until top has lightly browned.
Video

Hi, I’m Michele Feuerborn, a home cook with 25+ years experience, and former AllRecipes Allstar, creating bold & easy Southern, Mexican, Tex-Mex, and Instant Pot recipes. Featured in publications like Parade and BuzzFeed. Read More…







Bev Deese says
loved it!!