Squash Casserole has tender yellow squash in a creamy, cheesy filling under a crisp, buttery cracker topping. It’s a side dish to make for a weeknight dinner or put on a potluck table. I like the contrast between the soft squash and the coarse, golden crumbs.
How to make squash casserole: Coat raw squash rounds in the creamy filling, add the cheddar-and-cracker topping, and bake at 375°F for 20 to 25 minutes, until bubbling and golden.
Why You’ll Love It
- Prep takes 20 minutes. You slice the squash and soften the onion, but you don’t have to cook the squash before it goes into the dish.
- You get two textures. The filling coats tender squash rounds, while coarse buttered crackers make a crisp top.
- It serves 6. The 2-quart dish makes a side you can bring straight to the table.
- The topping is easy to handle. You can crush the crackers in a bag with a rolling pin or by hand in a bowl.
Ingredient Notes
Yellow squash: Buy 2 pounds, or about 5 squash, and cut them into 1/3-inch rounds. Keeping the slices close to the same thickness gives you a more even layer in the baking dish. I use the rounds raw here; cooking them first would change the method and timing.
Sweet onion: Dice enough for 1/2 cup. It goes into a skillet with butter before you stir in the cream cheese, so don’t put raw onion directly into the squash bowl. I watch for the onion to soften rather than letting it take on a dark color.
Cream of mushroom soup and cream cheese: Use 1 can of condensed cream of mushroom soup. Soften the cream cheese before you begin, then stir it into the warm onion mixture until mostly melted and smooth. If you still see large pieces, keep stirring in the skillet before you mix the filling.
Sharp cheddar: Shred 8 ounces and divide it between the filling and the topping. Half goes around the squash, and half sits with the crackers. I keep those portions separate while I prep so the topping doesn’t end up short on cheese.
Ritz crackers and butter: Coarsely crush about 25 crackers rather than turning them into fine dust. Toss the crumbs with the melted butter before they go on the casserole so the topping is buttered throughout. The butter for the topping is separate from the tablespoon you use for the onion.
Ingredients
- 2 pounds yellow squash, about 5 squash, sliced into 1/3-inch rounds
- 1/2 cup sweet onion, diced
- 1 tablespoon butter, for sautéing the onion
- 1 can cream of mushroom soup
- 4 ounces cream cheese, softened
- 1 egg
- 8 ounces sharp cheddar cheese, shredded and divided
- 1/2 teaspoon salt
- 1/2 teaspoon black pepper, freshly ground
- About 25 Ritz crackers, coarsely crushed
- 1/2 stick butter, melted, for the topping
How to Make Squash Casserole
1. Heat the oven. Preheat your oven to 375°F and spray a 2-quart baking dish with nonstick cooking spray. Have the dish ready before you mix the filling so the coated squash can go straight in.
2. Slice the squash. Wash the yellow squash, cut it into 1/3-inch rounds, and put the rounds in a large bowl. Look over the pile for noticeably thick pieces and cut those closer to the size of the others before adding the filling.
3. Soften the onion. Sauté the diced onion in 1 tablespoon butter over medium heat until soft, about 5 to 6 minutes. Stir in the softened cream cheese until it is mostly melted and smooth. Keep stirring if a large piece of cream cheese is still holding its shape.
4. Mix the filling. Combine the onion mixture with the cream of mushroom soup, egg, half the cheddar, salt, and pepper. Pour it over the raw squash and mix until the rounds are coated. Transfer everything to the prepared dish and press down lightly to even the surface.
5. Add the topping. Coarsely crush the Ritz crackers in a zip-top bag with a rolling pin, or crush them by hand in a bowl. Toss the crumbs with the melted 1/2 stick butter and the remaining cheddar, then scatter the mixture over the squash. Cover the surface rather than leaving the topping in a mound.
6. Bake. Bake for 20 to 25 minutes, until the casserole is bubbling and the topping is golden brown. Check the center with a food thermometer: a casserole must reach 165°F. Continue baking if the center has not reached that temperature.
Do You Need to Cook and Drain the Squash First?

No. For this casserole, the squash goes into the filling raw. Slice it, coat the rounds, and bake them beneath the cracker topping. You don’t need a separate stewing and draining stage before you assemble the dish.
That choice also shapes what you should expect when you serve it. You’re looking for tender squash with a creamy coating, bubbling edges, and coarse golden crumbs—not squash that has been cooked down before it reaches the oven. I’d leave the rounds as rounds rather than trying to mash them into the filling.
Raw squash can release moisture as it bakes, so don’t treat a golden top alone as proof that the center is done. Use the baking cues and the thermometer check in the method.
Tips for Success
Why do some squash slices feel firmer than others?
Look at the slices before you add the filling: if some are visibly thicker, they won’t match the thinner rounds when you serve the casserole. Cut the thick pieces closer to the specified 1/3-inch thickness while they’re still on the cutting board. I take a moment to check the slices at that point, when they’re easiest to adjust.
Why are there bare patches under the topping?
Take a look at the dish after you transfer the squash. A high pile in the middle leaves less room for crumbs around the edges. Press the filling into an even surface, then move any clustered topping over the exposed areas before baking.
Why can I still see a large piece of cream cheese?
It may not have softened enough to stir smoothly into the warm onion. If you spot a large piece while the mixture is still in the skillet, keep stirring until the cream cheese is mostly melted and smooth. It’s easier to deal with there than after you’ve coated the squash.
Storage & Reheating
USDA FSIS says to refrigerate leftovers within 2 hours in shallow, covered containers and use them within 3 to 4 days. Frozen leftovers have a 3-to-4-month quality window, although cream sauces may not freeze well, so the texture of this creamy casserole may change. Reheat leftovers to 165°F, checking with a food thermometer.
What to Serve With It
Serve this squash casserole beside a main dish, or build a casserole spread if you’re feeding a group. For another buttery crumb topping, try Ritz cracker chicken casserole; for a creamy main, choose million dollar chicken casserole. You could set out hashbrown casserole or slow cooker potato casserole as another side. If you’d rather browse hearty mains, look at hobo casserole and cowboy casserole.
Frequently Asked Questions
Is squash casserole a side dish?
Yes, this casserole is meant to serve 6 as a side dish. Its creamy filling and buttery topping make it substantial enough to sit alongside a simpler main.
Is this made with winter squash?
No. Buy yellow summer squash for the sliced rounds in this recipe. Pumpkin and butternut squash aren’t part of the ingredient list.
Do you peel the yellow squash?
The preparation calls for washing and slicing the squash, with no peeling step. Slice it into rounds as directed, then put the rounds in the bowl for coating.
Final Notes
Keep the cracker pieces coarse if you want to see that distinct crumbly topping when you scoop into the dish. Leave a question or tell me how your casserole turned out in the comments.

Squash Casserole
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Ingredients
- 2 pounds yellow squash about 5 squash; sliced into 1/3-inch rounds
- 1/2 cup sweet onion diced
- 1 tablespoon butter for sautéing the onion
- 1 can cream of mushroom soup
- 4 ounces cream cheese softened
- 1 egg
- 8 ounces sharp cheddar cheese shredded and divided
- 1/2 teaspoon salt
- 1/2 teaspoon black pepper freshly ground
- about 25 crackers Ritz crackers coarsely crushed
- 1/2 stick butter melted, for the topping
Instructions
- Preheat the oven to 375°F and spray a 2-quart baking dish with nonstick cooking spray.
- Wash the yellow squash, slice it into 1/3-inch rounds, and place it in a large bowl.
- Sauté the diced onion in 1 tablespoon butter over medium heat until soft, about 5 to 6 minutes. Stir in the cream cheese until mostly melted and smooth.
- Combine the onion mixture with the cream of mushroom soup, egg, half the cheddar, salt, and pepper. Pour it over the raw squash and mix until coated. Transfer to the prepared dish and press down lightly to even the surface.
- Coarsely crush the Ritz crackers in a zip-top bag with a rolling pin or by hand in a bowl. Toss with the melted 1/2 stick butter and the remaining cheddar, then sprinkle over the casserole.
- Bake for 20 to 25 minutes, until bubbling and golden brown. Check the center with a food thermometer; a casserole must reach 165°F. Continue baking if necessary to reach that temperature.






