This old fashioned squash casserole recipe is one of those dependable side dishes that never seems to go out of style. Tender yellow squash and onion are folded into a creamy, lightly cheesy filling and finished with a buttery Ritz cracker topping.

This is the kind of recipe that feels right at home beside baked chicken, meatloaf or a Sunday roast. It is also easy to carry to a church potluck, family reunion or holiday dinner.

The most important step is removing the excess moisture from the cooked squash. Yellow squash contains a surprising amount of water, and draining it well keeps the casserole creamy rather than watery.

Old-fashioned Southern squash casserole with a buttery Ritz cracker topping — Creamy yellow squash casserole topped with buttery golden cracker crumbs.

Why You’ll Love This Old Fashioned Squash Casserole

It uses familiar, inexpensive ingredients.
The filling is creamy without becoming soupy.
Buttery cracker crumbs add a crisp golden topping.
It can be assembled ahead of time.
It works for everyday dinners, potlucks and holiday meals.

Ingredients You’ll Need

Yellow squash

Choose small to medium yellow squash when possible. They usually have a more tender texture and fewer large seeds than oversized squash.

Onion

A sweet or yellow onion adds flavor without overpowering the squash.

Sour cream and mayonnaise

Using a small amount of each creates a creamy filling with a little tang and enough structure to hold together.

Egg

The egg helps bind the casserole as it bakes.

Cheddar cheese

Sharp cheddar adds more flavor than mild cheddar, so you can use less without losing the cheesy taste.

Ritz crackers

Buttery round crackers create the traditional crisp topping associated with old-fashioned Southern squash casserole.

How to Make Old Fashioned Squash Casserole

Begin by slicing the squash evenly so it cooks at the same rate. Cook the squash and onion in a small amount of water until just tender, not falling apart.

Drain the vegetables thoroughly. Allow them to sit in the colander for several minutes, and gently press out excess moisture. This is the most important step for preventing a watery casserole.

Stir together the sour cream, mayonnaise, egg, seasonings and part of the cheese. Fold in the drained squash and onion without overmixing.

Transfer the mixture to a buttered baking dish. Combine the crushed crackers with melted butter and the remaining cheese, then sprinkle the topping evenly over the casserole.

Bake until the filling is hot and set and the topping is crisp and golden.

Tips for the Best Old Fashioned Squash Casserole

Do not overcook the squash

Cook it only until fork-tender. Squash that is cooked until mushy can disappear into the filling.

Drain it very well

Let the squash rest in a colander for at least five minutes. Gently pressing it with a spoon removes additional moisture.

Crush the crackers coarsely

Fine cracker dust creates a dense topping. Leave some small pieces for better texture.

Let the casserole rest

Allow it to sit for 5 to 10 minutes after baking. This gives the filling time to set before serving.

Easy Variations

Replace half the yellow squash with zucchini.
Add 1/4 teaspoon garlic powder for a slightly more savory flavor.
Use Monterey Jack in place of some of the cheddar.
Add finely diced red bell pepper for color.
Replace the Ritz crackers with crushed saltines or seasoned breadcrumbs.
Add cooked crumbled bacon for a richer variation.

What to Serve with Old Fashioned Squash Casserole

Serve this casserole alongside meatloaf, baked chicken, pork chops, ham or roast beef. It also works well with green beans, sliced tomatoes, cornbread or a simple garden salad.

Because it travels well and serves several people, it is especially useful for church dinners, potlucks, family reunions and holiday gatherings.

Make Ahead and Storage

To make the casserole ahead, prepare the squash filling and place it in the baking dish. Cover and refrigerate it for up to 24 hours. Keep the cracker topping separate and add it immediately before baking.

Store leftovers in a covered container in the refrigerator for up to four days.

Reheat individual servings in the microwave or warm the covered casserole in a 325°F oven. Remove the cover during the final few minutes to help restore some crispness to the topping.

Freezing is possible, but the squash may release additional moisture after thawing. For the best texture, this casserole is better prepared fresh or refrigerated before baking.

Frequently Asked Questions

Why is my squash casserole watery?

Yellow squash naturally contains a great deal of water. Cook it only until tender and drain it thoroughly before adding it to the filling.

Do I need to peel yellow squash?

No. The peel is tender and edible, particularly on small and medium squash.

Can I use zucchini?

Yes. You may substitute zucchini for some or all of the yellow squash, although the finished casserole will have a slightly different appearance and texture.

Can squash casserole be made the day before?

Yes. Assemble the filling and refrigerate it in the baking dish. Add the cracker topping shortly before baking.

Can I use frozen squash?

Fresh squash gives the best texture. Frozen squash can work, but it must be thawed, cooked and drained extremely well.

This old-fashioned squash casserole is simple, familiar and made from the kinds of ingredients home cooks have relied on for generations. Save it for summer squash season, but do not overlook it when you need a dependable side dish for Thanksgiving, Easter or your next family gathering.

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