The Cracker Barrel Squash Casserole is a beloved Southern side dish made with tender yellow squash, sautéed onions, creamy cheese sauce, and a buttery cracker topping. It’s baked until bubbly and crisp, creating a warm, comforting flavor that pairs beautifully with any main course. The casserole balances sweetness from the squash, creaminess from cheese and milk, and crunch from the topping — a perfect Southern comfort classic.
6 cups yellow squash, sliced
1 medium onion, finely chopped
1 cup shredded cheddar cheese
1 cup crushed buttery crackers (like Ritz)
½ cup sour cream
1 can (10.5 oz) cream of chicken soup (or mushroom for vegetarian option)
2 tablespoons butter
½ teaspoon garlic powder
Salt and black pepper to taste
2 tablespoons melted butter (for topping)
¼ cup extra crushed crackers (for topping)
Preheat oven: Set oven to 350°F (175°C) to ensure even baking.
Cook squash and onions: In a large skillet, sauté sliced squash and onions with butter until tender, about 8–10 minutes.
Drain excess liquid: Remove from heat and drain any remaining moisture to avoid a soggy casserole.
Combine ingredients: In a large bowl, mix the cooked squash and onions with cream of chicken soup, sour cream, shredded cheese, garlic powder, salt, and pepper.
Add crackers: Stir in crushed crackers to give the mixture its signature texture.
Transfer to baking dish: Spoon the mixture into a greased casserole dish and spread evenly.
Add topping: Mix melted butter with the remaining crushed crackers and sprinkle over the casserole.
Bake: Bake uncovered for 25–30 minutes until golden and bubbly on top.
Serve hot: Let it rest for 5 minutes before serving to allow flavors to settle.