Sautéed Yellow Squash and Caramelized Onions Recipe

This side dish is a quick, delicious way to prepare yellow squash—generously buttered and inspired by a New Orleans classic from Tujague’s. It’s simple and incredibly flavorful.

First, onions and red bell pepper are gently sautéed in butter. Then round slices of summer squash are added and simmered in the butter and a splash of chicken broth, absorbing the rich flavors. The result is tender, savory squash with a buttery finish.

For a smokier note you can swap some butter for bacon grease like in Southern-style vegetable sides, but plain butter highlights the squash’s natural sweetness beautifully.

A blue and gray frying pan with buttery yellow summer squash and onions in it with a wooden spoon.

Ingredients Needed

Here’s a quick overview of the ingredients for this classic summer squash and onions recipe. Exact measurements and step-by-step instructions follow in the recipe card below.

  • Butter
  • Red Bell Pepper
  • Onion
  • Yellow Squash or Zucchini
  • Sugar (optional)
  • Kosher Salt
  • Black Pepper
  • Chicken Broth (or vegetable broth)
The ingredients in buttery yellow squash with onions, laid out & labeled.

How to Make Summer Squash and Onions

  • Melt the butter in a skillet over medium heat. Prepare the squash by slicing into 1/4-inch rounds.
The ingredients in buttery squash on a cutting board - sliced yellow squash diced onion, red bell pepper, butter, salt, pepper, sugar, and chicken stock.
  • Sauté the diced onion and red bell pepper in the melted butter until the onion becomes translucent.
  • Add the squash slices and sauté a few minutes so each piece is coated in butter and begins to soften.
A collage of images showing how to make buttery yellow squash with onions, steps 1-5.
  • Season with a little sugar (if using), kosher salt, and black pepper. Pour in 1/4 to 1/2 cup chicken broth (or vegetable broth) and bring to a gentle simmer.
  • Reduce the heat, cover the skillet, and cook about 10 minutes until the squash is tender and flavors meld.
A collage of images showing how to make buttery yellow squash with red bell peppers and onions, steps 6-10.

Taste and adjust with a final sprinkle of salt and pepper, then serve warm.

A blue and gray frying pan with sautéed squash, red bell peppers, and onions in it with a wooden spoon.

Variations

  • Use zucchini rounds, diced pattypan squash, or any summer squash you have on hand instead of yellow squash.
  • Substitute bacon grease for butter for a smoky flavor.
  • Make it vegetarian by using vegetable broth in place of chicken broth.

Storage & Reheating

  • Store leftovers in an airtight container in the refrigerator for up to 3–4 days.
  • Reheat gently in the microwave or in a skillet over low heat until warmed and the butter melts. Any extra buttery sauce is great for frying eggs or spooning over toast.
A blue and gray frying pan with cooked summer squash, red bell peppers, and onions in it with a wooden spoon.

Have You Tried This Recipe?
Please rate it and leave a comment below. I’d love to hear your thoughts!

SaveSaved
Pin
Text
Print
A blue and gray frying pan with sautéed yellow summer squash and onions in it with a wooden spoon.

Buttery Yellow Squash & Onions

5 from 1 vote
Looking for a delicious summer side dish? Try this classic recipe for Yellow Squash and Onions. It’s the perfect way to enjoy fresh summer squash!
Author: Kari
Servings: 6
Prep: 10 minutes
Cook: 20 minutes
Total: 30 minutes

Ingredients  

  • 6 tablespoons butter
  • ½ red bell pepper , diced
  • ½ medium onion , diced
  • 2 yellow squash , sliced, around 1 ½ pounds
  • ¼ teaspoon sugar , optional
  • ½ teaspoon kosher salt
  • ¼ teaspoon black pepper
  • ¼ – ½ cup chicken broth or vegetable broth

Instructions 

  • Melt the butter in a skillet over medium heat.
    6 tablespoons butter
  • Sauté the onion and red bell pepper until the onion is translucent.
    ½ red bell pepper, diced½ medium onion, diced
  • Add the squash and sauté for a few minutes, coating the slices in butter. Stir in the sugar (if using), kosher salt, and black pepper. Pour in the chicken broth and bring to a simmer.
    2 yellow squash, sliced (about 1½ lb)¼ tsp sugar (optional)½ tsp kosher salt¼ tsp black pepper¼–½ cup chicken broth (or vegetable broth)
  • Reduce heat, cover, and cook about 10 minutes, until the squash is tender.
  • Adjust seasoning with an extra pinch of salt and pepper if needed, then serve warm.

Notes

Variations

  • Use yellow summer squash, zucchini rounds, diced pattypan, or any garden squash you prefer.
  • Swap bacon grease for butter for a richer, smoky flavor.
  • Use vegetable broth to make the dish vegetarian.

Storage & Reheating

Refrigerate leftovers in an airtight container and reheat gently in the microwave or in a skillet over low heat. Extra buttery juices make a tasty base for fried eggs.

Nutrition

Serving: 0.5cupCalories: 119kcalCarbohydrates: 4gProtein: 1gFat: 12gSaturated Fat: 7gPolyunsaturated Fat: 1gMonounsaturated Fat: 3gTrans Fat: 0.5gCholesterol: 30mgSodium: 322mgPotassium: 212mgFiber: 1gSugar: 2gVitamin A: 792IUVitamin C: 24mgCalcium: 17mgIron: 0.3mg

Nutrition information is approximate and provided as a guide.

Course: Side Dish
Cuisine: American, Southern
Keyword: buttery yellow squash, sauteed squash, squash and onions, yellow squash and onions
Did you make this recipe?Mention @southernbytes or tag #southernbytes when you share!

More Yellow Squash Recipes

  • Jalapeño Cheddar Zucchini Muffins
  • Sautéed Zucchini & Squash
  • Oven Roasted Yellow Squash
  • Southern Fried Squash
  • Squash Casserole