Southern Squash Casserole

By Angela Lietzke | Updated on August 19, 2026 | Leave a comment | This post may contain affiliate links

Old-fashioned squash casserole has been a staple on Southern tables for generations, and for good reason. It's cheesy, comforting, and incredibly easy to make. My version comes together in under an hour with tender yellow squash, sweet onion, cheddar cheese, and a buttery Ritz cracker topping baked until golden and crisp. It's the kind of easy Southern side dish that fits right in at Sunday dinner, potlucks, holiday gatherings, or anytime summer squash is in abundance.

Southern squash casserole in a baking dish with a topping of Ritz crackers.

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About My Southern Squash Casserole

Headshot of Angela, the cook at Happy Honey Kitchen.

Squash casserole with Ritz crackers is one of those classic Southern side dishes that proves simple ingredients can still bring plenty of comfort and flavor to the table.

Here in Texas, this yellow squash casserole earns a spot at BBQ cookouts, Thanksgiving tables, and everything in between. I've brought it to more gatherings than I can count, and the dish always comes back empty. I have a whole collection of side dish recipes if you're looking for more crowd-pleasing options to round out your table.

Serve this alongside a hearty meat like my oven brisket recipe for an easy Texas-style dinner, or add it to your holiday table next to my jalapeno corn casserole when you need sides everyone will happily scoop onto their plate.

Angela's signature.

Ingredient Notes

You only need a handful of simple ingredients to make this Southern squash casserole recipe. Here are a few notes to help you choose the best ingredients and make easy substitutions if needed.

Ingredients needed to make this squash casserole with Ritz crackers.
  • Yellow squash: Medium-size squash tend to have the best texture and fewer large seeds than oversized squash. Yellow squash is traditional here, but you can swap part of it with zucchini, just know that zucchini releases a lot of water too, so be extra diligent about draining.
  • Sour cream and mayonnaise: This combo is the backbone of the creamy filling. Full-fat versions give you the best results.
  • Smoked paprika and cayenne: These two seasonings are what set this recipe apart from a plain, bland squash casserole. They add depth and just a little kick without making it spicy.
  • Eggs: Bind the filling together so the casserole sets up nicely instead of becoming loose or runny.
  • Cheddar cheese: I suggest using mild or medium cheddar because sharp cheddar can turn grainy. Freshly shredded cheese melts more smoothly than pre-shredded.
  • Ritz crackers: About half a sleeve, or 15 crackers, crushed and tossed in butter with a little parmesan. They bring the crunch and that buttery, slightly salty flavor that makes this topping so good. Panko would work in a pinch, but Ritz is the classic choice for a reason.

How to Make Squash Casserole

Follow these simple steps for a creamy, cheesy Southern squash casserole with tender squash and a buttery, golden Ritz cracker topping every time.

Sliced yellow squash, onions, and seasonings in a large skillet.

Step 1: Preheat the oven to 350°F and lightly grease an 8x8-inch baking dish with nonstick cooking spray.

Melt butter in a large skillet over medium heat. I use a large skillet so the squash have plenty of room to cook. If the pan is overcrowded, the squash will steam and release even more moisture.

Add the sliced squash, diced onion, and all the seasonings. Sauté for about 10 minutes until the squash is softened and easily pierced with a fork but still holds its shape. Don't let it turn to mush, it will continue cooking in the oven.

Yellow squash mixture draining in a colander.

Step 2: This is the most important step. Transfer the cooked squash and onions to a colander and let them drain for at least 10 full minutes.

Give the colander a gentle shake once or twice to help move the liquid along. You can also lightly press the squash with the back of a spoon, just don't mash it. Skipping this step will leave you with a watery casserole.

A mixing bowl with sour cream, mayo, eggs, and cheese mixed together with a spoon.

Step 3: In a large mixing bowl, whisk together the sour cream, mayonnaise, and eggs until smooth. Stir in 1 cup of shredded cheddar and ¼ cup of parmesan.

Sliced and cooked yellow squash being adding to the creamy filling.

Step 4: Fold the drained squash mixture into the creamy filling until everything is evenly combined. Transfer to your prepared baking dish.

Crushed Ritz crackers, butter, and cheese stirred together in a small bowl.

Step 5: Melt the remaining butter in a bowl. Stir in the crushed Ritz crackers and remaining parmesan and toss to coat evenly.

Sprinkle the cracker mixture over the top of the casserole right before baking.

Baked yellow squash casserole with golden Ritz cracker topping.

Step 6: Bake at 350°F for 25 minutes. The casserole should be hot and bubbly around the edges, with a set, creamy center and a golden-brown topping.

If you want the topping a little toastier, broil it for 1 to 2 minutes at the end. Watch it closely because those buttery crackers can go from golden to scorched fast.

Let the casserole sit for 5 to 10 minutes before scooping. This gives the filling time to set slightly and makes it so much easier to serve.

Tips for the Best Squash Casserole

  • Use medium-size squash. As yellow squash gets larger and more mature, the seeds become bigger and firmer, and the flesh around them can get a little more spongy, watery, and less tender. For a casserole, that can mean slightly more moisture and a less creamy, uniform texture.
  • Drain the squash well. Don't rush this step! Yellow squash contains a lot of water, and draining it thoroughly is one of the most important tricks for keeping your casserole creamy instead of watery.
  • Add the topping right before baking. If you're prepping this casserole ahead of time, keep the cracker mixture in a separate sealed bag or container and add it just before it goes into the oven. Crackers sitting on a moist filling will lose their crunch fast.
  • Let it rest. I know it's tempting to dig in straight out of the oven, but giving it 5 to 10 minutes makes a real difference. The filling firms up slightly and scoops so much more cleanly.
Southern squash casserole in a baking dish with a spoon.

Recipe FAQs

Why is my squash casserole watery?

This almost always comes down to not draining the squash long enough. Make sure you let it sit in the colander for the full 10 minutes and give it a few gentle shakes. Lightly pressing with a spoon can help release even more liquid.

Can I use zucchini instead of yellow squash?

Yes, or you can swap part of the squash for zucchini. Just know that zucchini releases a lot of water too, so be extra careful about draining.

Can I freeze squash casserole?

Freezing is possible but not ideal. Dairy-based fillings can separate a bit after thawing and the cracker topping won't hold up as well. For the best texture and flavor, this one is best enjoyed fresh or within a few days from the fridge.

Make-Ahead & Storage

You can prepare the casserole filling up to one day ahead, spread it into the baking dish, cover, and refrigerate. Make the cracker topping separately and store it covered at room temperature. Add the topping immediately before baking. If baking straight from the refrigerator, expect it to need about 5-10 additional minutes.

Store leftovers covered in the refrigerator for 3-4 days. For the best texture, reheat individual portions in the oven, toaster oven, or air fryer so the buttery topping has a chance to crisp back up. The microwave works in a pinch, but the cracker topping will soften.

More Southern Side Dishes

Southern squash casserole in a baking dish with a topping of Ritz crackers.
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Southern Squash Casserole with Ritz Crackers

Angela Lietzke
This easy Southern Squash Casserole recipe is made with tender yellow squash, sweet onion, cheddar cheese, and a creamy filling topped with buttery Ritz crackers. It bakes until hot, bubbly, and golden for a classic Southern side dish that's perfect for holidays, potlucks, and family dinners.
Prep Time 15 minutes
Cook Time 25 minutes
Total Time 40 minutes
Servings 8 servings
Calories 318 kcal

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Equipment

  • 8x8 baking dish
  • Large Skillet
  • large mixing bowl

Ingredients
  

  • 4 tablespoons butter divided
  • 2 ½ pounds yellow squash 5-7 medium squash, sliced into ¼ inch discs
  • 1 cup sweet onion chopped
  • 1 teaspoon salt
  • ½ teaspoon black pepper
  • ½ teaspoon garlic powder
  • ¼ teaspoon smoked paprika
  • ¼ teaspoon cayenne
  • ½ cup sour cream
  • ½ cup mayonnaise
  • 2 eggs
  • 1 cup cheddar cheese shredded
  • ¼ cup grated parmesan plus 2 tablespoons for topping
  • 15 Ritz crackers roughly crushed

Instructions
 

  1. Prep your baking dish. Preheat the oven to 350°F and spray an 8x8-inch baking dish with non-stick cooking spray.
  2. Sauté the squash. Melt 2 tablespoons of butter in a large skillet over medium heat. Add the sliced squash, diced onion, and all the seasonings. Sauté for about 10 minutes until the squash is softened and easily pierced with a fork but still holds its shape.
  3. Drain thoroughly. Transfer the cooked squash mixture to a colander and let it drain for at least 10 full minutes. Give the colander a gentle shake once or twice to help move the liquid along. You can also lightly press the squash with the back of a spoon.
  4. Make the creamy filling. In a large mixing bowl, whisk together the sour cream, mayonnaise, and eggs until smooth. Stir in 1 cup of shredded cheddar and ¼ cup of parmesan.
  5. Combine and transfer. Fold the drained squash mixture into the creamy filling until everything is evenly combined. Transfer to your prepared baking dish.
  6. Make the cracker topping. Melt the remaining 2 tablespoons of butter in a bowl. Stir in the crushed Ritz crackers and 2 tablespoons of parmesan and toss to coat evenly. Sprinkle the mixture over the top of the casserole right before baking.
  7. Bake. Bake at 350°F for 25 minutes. The casserole should be hot and bubbly around the edges, with a set, creamy center and a golden-brown topping. If you want the topping a little toastier, broil it for 1 to 2 minutes at the end.
  8. Rest before serving. Let the casserole sit for 5 to 10 minutes before scooping. This gives the filling time to set slightly and makes it easier to serve.

Notes

  • Use medium-size squash. They're typically more tender and less watery, with smaller seeds than oversized squash.
  • Drain the squash well. This is key to preventing a watery casserole and keeping the filling creamy.
  • Add the Ritz cracker topping just before baking. If making ahead, store the cracker mixture separately so it stays crisp and crunchy.
  • Store leftovers covered in the refrigerator for up to 3 to 4 days.

Nutrition

Calories: 318kcalCarbohydrates: 12gProtein: 8gFat: 27gSaturated Fat: 11gPolyunsaturated Fat: 8gMonounsaturated Fat: 7gTrans Fat: 0.3gCholesterol: 87mgSodium: 646mgPotassium: 463mgFiber: 2gSugar: 5gVitamin A: 843IUVitamin C: 25mgCalcium: 186mgIron: 1mg
Made it? Loved it?I'd appreciate it if you left a quick comment and star rating. Thanks! 🤠
Cuisine: American, Texan
Course: Side Dish

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