Squash Casserole Recipe

Imagine the comforting aroma of tender yellow squash casserole bubbling in your oven, topped with a golden, crispy crust that promises warmth in every bite. This classic Southern squash casserole combines fresh summer squash with creamy cheese, crunchy crackers, and just the right blend of seasonings to create a dish that’s both homey and impressive. Whether served as a holiday side or a weeknight vegetable option, this versatile squash casserole never disappoints. You’ll learn how to create the perfect balance of textures and flavors while avoiding the common pitfall of a watery casserole.

Why You’ll Love This Recipe

This squash casserole stands out from others for countless reasons. First, it strikes the perfect balance between creamy interior and crunchy topping – the velvety squash mixture contrasts beautifully with the buttery cracker crust. The natural sweetness of yellow squash pairs wonderfully with sharp cheddar cheese, creating a flavor profile that’s comforting yet sophisticated.

Unlike many vegetable dishes that feel like an obligation, this squash casserole recipe transforms humble squash into something even vegetable skeptics will request seconds of. It’s also incredibly versatile – elegant enough for Thanksgiving dinner yet simple enough for Tuesday night. The prep work is straightforward with no complicated techniques required, and you can prepare components ahead of time for easy assembly.

Best of all, this casserole celebrates seasonal produce while creating a dish that feels indulgent despite being packed with vegetables. The combination of textures – from the tender squash to the melty cheese to the crispy topping – makes each bite interesting and satisfying.

Ingredients

For this delicious squash casserole, you’ll need:

• 2 pounds yellow summer squash, sliced into ¼-inch rounds (about 6-7 medium squash)
• 1 large yellow onion, finely diced (about 1 cup)
• 2 tablespoons butter, plus 2 tablespoons melted for topping
• 2 large eggs, lightly beaten
• 1 cup sour cream (full-fat provides the best texture)
• 1½ cups sharp cheddar cheese, freshly grated and divided
• 1 sleeve (about 30) buttery round crackers (like Ritz), crushed and divided
• 1 teaspoon garlic powder
• ½ teaspoon dried thyme
• ¼ teaspoon cayenne pepper (optional)
• 1½ teaspoons kosher salt
• ½ teaspoon freshly ground black pepper

The yellow squash should be fresh and firm, as older squash can make your casserole watery. Sharp cheddar provides the best flavor contrast, though extra-sharp works beautifully for cheese lovers. For the crackers, butter-flavored varieties create that signature golden, flavorful crust that makes squash casserole so irresistible.

Pro Tips

Remove excess moisture from the squash. The most critical step for a perfect squash casserole is eliminating excess water. After cooking your sliced squash, drain thoroughly and then press between paper towels or a clean kitchen cloth. For even better results, place the cooked squash in a colander for 10 minutes before pressing. This prevents the dreaded soggy casserole syndrome that plagues many recipes.

Don’t skimp on seasoning. Yellow squash has a mild flavor that needs proper seasoning. Taste the mixture before adding eggs and adjust salt and pepper accordingly. The difference between a good and great squash casserole often comes down to proper seasoning. Remember that the crackers will add some saltiness, so balance accordingly.

Create texture contrasts. Reserve about a third of your crushed crackers and a quarter of your cheese for the topping. Mix the remaining portions into the squash mixture itself. This dual approach creates a cohesive casserole with flavor throughout while still maintaining that coveted crispy top layer. For maximum crispiness, wait until the last 15 minutes of baking to add the final cracker topping.

Instructions

Step 1: Preheat your oven to 350°F (175°C) and lightly grease a 9×13-inch baking dish with butter or cooking spray. This preparation ensures your squash casserole won’t stick and will develop a nicely browned edge.

Step 2: Place the sliced squash and diced onion in a large pot with about 1 inch of water. Bring to a boil over medium-high heat, then reduce to a simmer. Cook for 5-7 minutes until the squash is just tender when pierced with a fork – be careful not to overcook as the squash will continue softening in the oven.

Step 3: Drain the squash and onion mixture thoroughly in a colander, then transfer to a clean kitchen towel or several layers of paper towels. Gently press to remove as much moisture as possible – this is crucial for a non-watery squash casserole.

Step 4: In a large mixing bowl, combine the 2 tablespoons of butter with the hot squash mixture, allowing the butter to melt. Let cool for about 5 minutes before proceeding to prevent cooking the eggs when added.

Step 5: Add the beaten eggs, sour cream, 1 cup of the cheddar cheese, two-thirds of the crushed crackers, and all seasonings (garlic powder, thyme, optional cayenne, salt, and pepper) to the squash mixture. Stir gently to combine thoroughly without mashing the squash.

Step 6: Transfer the mixture to your prepared baking dish, spreading it evenly. Top with the remaining ½ cup of cheese, then set aside the remaining crackers for later.

Step 7: Bake uncovered for 25 minutes, then remove from the oven. Mix the remaining crushed crackers with the 2 tablespoons of melted butter and sprinkle evenly over the partially-baked casserole.

Step 8: Return the squash casserole to the oven and bake for an additional 10-15 minutes until the topping is golden brown and the center is set but not dry. Allow to rest for 5-10 minutes before serving to let the casserole firm up slightly.

Variations

Squash and Zucchini Casserole: Create a colorful twist by substituting half of the yellow squash with green zucchini. This variation of summer squash casserole offers a beautiful color contrast while maintaining the same delicious flavor profile. The combination of both squashes adds visual interest and a slightly different texture to the final dish.

Squash Casserole with Herbs: Elevate the flavor by adding ¼ cup of fresh herbs. A combination of chopped basil, parsley, and chives brings brightness to the creamy squash casserole. For a more savory direction, try fresh thyme and rosemary instead of the dried thyme in the original recipe.

Lighter Squash Casserole: For a healthier version, substitute Greek yogurt for the sour cream, use reduced-fat cheese, and replace half the cracker topping with panko breadcrumbs mixed with a tablespoon of olive oil. This variation still maintains the comfort food appeal of traditional squash casserole while reducing calories and fat.

Storage and Serving

Store leftover squash casserole in an airtight container in the refrigerator for up to 4 days. Reheat individual portions in the microwave for 1-2 minutes or place the entire casserole (in an oven-safe dish) in a 325°F oven for 15-20 minutes until heated through. For best results when reheating, sprinkle with a few fresh crushed crackers to restore some crunch to the topping.

This squash casserole pairs beautifully with roasted chicken or grilled pork chops for a complete meal. It’s also perfect alongside other Southern classics like fried chicken, meatloaf, or country ham. For a delightful vegetable-forward dinner, serve with a simple green salad and warm cornbread.

For special occasions, prepare the casserole up to 24 hours in advance, stopping before adding the final cracker topping. Refrigerate covered, then bring to room temperature for 30 minutes before baking. Add the butter-cracker topping just before putting it in the oven for the freshest result.

FAQs

Can I make this squash casserole ahead of time?
Yes! Prepare the casserole up to the point of baking, cover, and refrigerate for up to 24 hours. When ready to bake, let it sit at room temperature for 30 minutes, then bake as directed, perhaps adding an extra 5-10 minutes to the initial baking time.

Why is my squash casserole watery?
The most common reason is not removing enough moisture from the cooked squash. Make sure to drain thoroughly and press the squash between towels. Also, using very fresh, firm squash rather than older, softer ones helps reduce excess water.

Can I freeze squash casserole?
While you can freeze it, the texture may change slightly upon thawing due to the high water content in squash. If freezing, do so before baking and without the cracker topping. Thaw completely in the refrigerator before adding the topping and baking.

What can I substitute for the crackers in the topping?
Great alternatives include panko breadcrumbs, crushed cornflakes, or even crushed stuffing mix. For a gluten-free option, use crushed gluten-free crackers or a mixture of gluten-free breadcrumbs and almond flour.

Can I use other types of squash?
Absolutely! Zucchini works perfectly, as does pattypan squash. Winter squashes like butternut would create a different dish but could work with adjusted cooking times for the initial squash softening.

Conclusion

This Squash Casserole is comfort food at its finest — creamy, cheesy, and topped with a buttery crunch that makes each bite utterly satisfying. It’s the kind of dish that transforms humble summer squash into a crave-worthy side that disappears quickly from holiday tables and family dinners alike. Whether you’re a longtime fan of Southern cooking or trying this classic for the first time, this recipe delivers that perfect balance of homey comfort and impressive flavor that makes you proud to bring it to the table. Enjoy the way this simple vegetable casserole brings smiles to everyone who tastes it!

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