If you ask me, yellow squash is one of the most underrated summer vegetables.
This simple side dish takes tender squash and sweet caramelized onions and cooks them down in bacon grease until they’re soft and full of flavor. Fresh thyme and garlic powder add just enough seasoning without getting in the way.
The squash slices hold their shape while soaking up all that savory goodness from the bacon fat and chicken broth. A little salt and black pepper at the end brings everything together.
It’s an easy, no-fuss recipe that pairs well with just about any main course you’re serving.
Why You’ll Love This Yellow Squash with Onions
- Ready in under 30 minutes – This side dish comes together quickly, making it perfect for busy weeknights when you need something fast and tasty on the table.
- Minimal ingredients – You only need a handful of simple ingredients that you probably already have in your kitchen.
- Naturally low-carb and healthy – Yellow squash is light and nutritious, so you can enjoy a veggie-packed side without any guilt.
- Flavorful and savory – The bacon grease and sweet onions add so much flavor to the tender squash, making it way more exciting than plain steamed vegetables.
What Kind of Yellow Squash Should I Use?
Any variety of yellow summer squash will work great for this recipe, whether you find straightneck or crookneck at your local market. Look for squash that’s firm to the touch with smooth, glossy skin and no soft spots or blemishes. Smaller to medium-sized squash (about 6-8 inches long) tend to be more tender and have fewer seeds than the larger ones, which can sometimes get a bit watery. If you can only find larger squash, no worries – just scoop out the seeds before slicing and you’ll be good to go.
Options for Substitutions
This simple side dish is easy to customize based on what you have in your kitchen:
- Yellow summer squash: You can easily swap yellow squash with zucchini or use a mix of both for variety. They cook the same way and have similar textures.
- Bacon grease: If you don’t have bacon grease saved, butter works great and gives a nice rich flavor. Olive oil is another option, though you’ll lose that smoky taste.
- Sweet onion: Regular yellow onions or white onions work just fine here. You can also use shallots for a milder, slightly sweeter flavor.
- Chicken broth: Vegetable broth makes an easy swap if you want to keep this vegetarian, or you can use water with a pinch of chicken bouillon.
Watch Out for These Mistakes While Cooking
The biggest mistake when cooking yellow squash is adding it to the pan at the same time as the onions, which leads to mushy, waterlogged squash – always give your onions a 3-minute head start so they can soften and caramelize slightly before the squash goes in.
Another common error is overcooking the squash, so keep a close eye during that final 5-8 minute covered stage and check for tenderness around the 5-minute mark, since squash can go from perfectly tender to mushy in just a minute or two.
To avoid a watery dish, make sure your heat is medium to medium-high when cooking the squash initially, which helps evaporate excess moisture before you add the broth.
Finally, don’t skip seasoning with salt and pepper at the end – squash needs a generous amount to bring out its mild, sweet flavor.
What to Serve With Yellow Squash with Onions?
This southern-style yellow squash makes a great side dish for just about any protein you’re grilling or baking. I love serving it alongside grilled chicken, pork chops, or even a simple baked fish – the mild, slightly sweet flavor of the squash complements everything without overpowering your main dish. It’s also perfect next to cornbread and a serving of black-eyed peas or butter beans for a complete southern-style meal. If you’re firing up the grill, throw on some burgers or barbecue ribs and you’ve got yourself a real crowd-pleaser of a dinner.
Storage Instructions
Store: Keep your leftover squash and onions in an airtight container in the fridge for up to 4 days. The flavors actually meld together nicely overnight, so it tastes great the next day too.
Reheat: Warm it up in a skillet over medium heat for a few minutes until heated through, or microwave it in 30-second intervals. You might need to drain off a little liquid since squash releases water as it sits, but it’ll still be delicious.
| Preparation Time | 10-15 minutes |
| Cooking Time | 10-15 minutes |
| Total Time | 20-30 minutes |
| Level of Difficulty | Easy |
| Servings | 4 servings |
Estimated Nutrition
Estimated nutrition for the whole recipe (without optional ingredients):
- Calories: 250-300
- Protein: 6-8 g
- Fat: 22-26 g
- Carbohydrates: 20-28 g
Ingredients
- 2 lbs yellow squash (cut into 1/4-inch slices)
- 1 large onion (thinly sliced into half-moons)
- 3 tbsp bacon grease
- 1/4 cup chicken broth
- 1/2 tsp fresh thyme leaves
- 1/4 tsp garlic powder
- salt to taste
- freshly cracked black pepper to taste
Step 1: Prepare the Vegetables
- 2 lbs yellow squash
- 1 large onion
Slice the yellow squash into 1/4-inch rounds and thinly slice the onion into half-moons.
Try not to make the squash too thin, as it will release more water and become mushy if sliced too thin.
Set both aside on a cutting board, ready to use.
Step 2: Sauté the Onions in Bacon Grease
- 3 tbsp bacon grease
- sliced onions from Step 1
Heat the bacon grease in a large skillet over medium-high heat until it shimmers.
Add the sliced onions and cook for about 3 minutes, stirring occasionally, until they become translucent and begin to soften.
This develops the base flavor for the dish and allows the onions to release their natural sweetness.
Step 3: Add Squash and Build Flavor
- sliced squash from Step 1
- 1/2 tsp fresh thyme leaves
- 1/4 tsp garlic powder
Add the sliced squash to the pan with the onions and cook for 3-5 minutes over medium-high heat, stirring occasionally.
I like to let the squash get a bit of color on the edges—it adds a subtle richness to the final dish.
Sprinkle in the fresh thyme leaves and garlic powder, stirring to coat the vegetables evenly.
Step 4: Braise and Finish Cooking
- 1/4 cup chicken broth
- salt to taste
- freshly cracked black pepper to taste
Pour in the chicken broth and immediately reduce the heat to medium.
Cover the skillet with a lid and cook for 5-8 minutes until the squash is tender and can be easily pierced with a fork.
The broth will create steam and gently soften the vegetables while keeping them from drying out.
Once the squash reaches your desired tenderness, remove the lid and season generously with salt and freshly cracked black pepper to taste.

Glazed Yellow Squash with Onions
Ingredients
- 2 lbs yellow squash (cut into 1/4-inch slices)
- 1 large onion (thinly sliced into half-moons)
- 3 tbsp bacon grease
- 1/4 cup chicken broth
- 1/2 tsp fresh thyme leaves
- 1/4 tsp garlic powder
- salt to taste
- freshly cracked black pepper to taste
Instructions
- Slice the yellow squash into 1/4-inch rounds and thinly slice the onion into half-moons. Try not to make the squash too thin, as it will release more water and become mushy if sliced too thin. Set both aside on a cutting board, ready to use.
- Heat the bacon grease in a large skillet over medium-high heat until it shimmers. Add the sliced onions and cook for about 3 minutes, stirring occasionally, until they become translucent and begin to soften. This develops the base flavor for the dish and allows the onions to release their natural sweetness.
- Add the sliced squash to the pan with the onions and cook for 3-5 minutes over medium-high heat, stirring occasionally. I like to let the squash get a bit of color on the edges—it adds a subtle richness to the final dish. Sprinkle in the fresh thyme leaves and garlic powder, stirring to coat the vegetables evenly.
- Pour in the chicken broth and immediately reduce the heat to medium. Cover the skillet with a lid and cook for 5-8 minutes until the squash is tender and can be easily pierced with a fork. The broth will create steam and gently soften the vegetables while keeping them from drying out. Once the squash reaches your desired tenderness, remove the lid and season generously with salt and freshly cracked black pepper to taste.







