Southern yellow squash casserole is a creamy baked side dish with tender squash rounds, cream cheese, sharp cheddar and a buttery Ritz cracker topping finished with Parmesan. This version serves 12 and pairs naturally with roast chicken, ham or meatloaf. Salting the squash before cooking and draining it again afterward helps keep excess water out of the filling.
The contrast is the whole point: soft squash underneath, uneven golden cracker crumbs on top. Plan on 20 minutes of prep, about 1 hour 30 minutes of cooking, and another 40 minutes for draining and resting-about 2 hours 30 minutes overall, with batch cooking affecting the clock. For another vegetable side with a creamy filling, try Cheesy Broccoli Rice Casserole.
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Ingredients You'll Need
- Squash filling:
- Yellow squash, sliced into thin rounds
- Kosher salt, for the initial draining step
- Salted butter, divided between the onion and squash batches
- Yellow onion, chopped
- Garlic, minced
- Cream cheese, softened
- Large eggs
- Sharp cheddar cheese, freshly grated
- Freshly ground black pepper
- Cooking spray or additional butter, for greasing the baking dish
- Cracker topping: Ritz crackers, crushed
- Salted butter, melted
- Parmesan cheese, grated
- Freshly ground black pepper
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Buy Now → Ingredient Notes and Swaps
Zucchini can replace some or all of the yellow squash; give it the same salting and draining treatment. Mild cheddar, Monterey Jack, or a combination can replace the sharp cheddar. The cream cheese should be soft enough to stir smooth before adding the eggs, so there aren't firm lumps to chase around the bowl.
Tools That Make It Easier
- Chef knife
- Cutting board
- Colander
- Paper towels
- Measuring cups and spoons
- Cheese grater
- Large skillet
- Large mixing bowl
- Small bowl for cooked onion and garlic
- Medium bowl for topping
- Silicone spatula or mixing spoon
- 2 ½-quart oval baking dish
- Oven
- Oven mitts
- Optional: foil if topping browns too quickly
- Covered containers for make-ahead filling and leftovers
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Buy Now → How to Make Southern Yellow Squash Casserole
Drain, cook, combine and bake in that order. The full ingredient measurements and individual instructions are in the recipe card below.
Step 1: Drain the squash and prepare the dish. Toss the sliced squash with the kosher salt in a colander for 30 minutes, rinse briefly, then blot thoroughly with paper towels. Heat the oven to 350°F with the rack in the center and grease a 2 ½-quart baking dish.

Step 2: Mix the filling and cook the vegetables. Stir the softened cream cheese smooth, beat in the eggs one at a time, then add the cheddar and pepper; separately, cook the onion in 1 tablespoon butter over medium-low heat for about 4 minutes and add the garlic for 30 seconds. Set those aside, divide the remaining 7 tablespoons butter among uncrowded squash batches, and cook over medium heat for 10 to 13 minutes per batch until tender; lower the heat if needed, drain again, and cool about 5 minutes.

Step 3: Assemble and add the crumbs. Fold the cooled squash, onion and garlic into the cheese mixture and spread it in the prepared dish. Mix the crushed Ritz crackers with the melted topping butter, Parmesan and pepper, then scatter over the filling.

Step 4: Bake and let it settle. Bake for 55 to 65 minutes, until the center is set, the edges are bubbling and the crumbs are golden; loosely cover with foil if the topping browns too quickly. Let the casserole stand for 10 minutes before serving.

Keeping the Filling from Getting Watery
Drain the squash twice: first after salting, then again after skillet cooking. The first pass draws out moisture before cooking; the second removes liquid the tender squash releases in the pan. Briefly rinsing removes surface salt, but it also leaves water behind, so blot thoroughly before the squash goes into the skillet.
Cook the squash in uncrowded batches and judge tenderness rather than pushing for deep browning. If the edges color before the middle softens, lower the heat. After the second draining, let the vegetables cool about 5 minutes before folding them into the egg mixture.

The Best Way to Store Leftovers
Refrigerate leftovers in a covered container within 2 hours of baking and use within 3 to 4 days. Microwave individual portions or warm larger portions, covered, in a 350°F oven until heated through.
Freeze baked, cooled portions tightly wrapped for up to 2 months. Thaw overnight in the refrigerator before reheating. Expect some moisture from the squash and a softer topping; uncover near the end of reheating to help the crumbs crisp.
Can You Make It Ahead?
Yes-refrigerate the assembled filling, covered, for up to 2 days and keep the cracker topping separate until just before baking. A cold casserole may take longer, so look for a set center and bubbling edges rather than relying only on the timer. Follow the baking dish manufacturer's guidance for refrigerator-to-oven use.

What to Serve with Squash Casserole
Pair this rich side with Homestyle Meatloaf with Brown Sugar-Ketchup Glaze, Copycat Honey Baked Ham or Weeknight Oven Roasted Chicken. If the chicken uses its hotter oven setting, plan separate oven time rather than changing this casserole's tested baking temperature.
Add Italian Side Salad for a crisp contrast, or Roasted Green Beans as another vegetable. For a holiday menu, browse Southern Thanksgiving Recipes for a Traditional Holiday and choose a mix of rich and fresh sides.
A Couple of Questions Before You Start
Does the squash go into the casserole raw? No. After the initial draining, cook the squash in butter until tender, drain it again, then let it cool about 5 minutes before mixing it with the filling. Baking finishes the assembled casserole; it doesn't replace the skillet step.
How do I know squash casserole is done? Look for three cues together: a set center, bubbling edges and a golden topping. Crumbs can brown before the filling sets; loosely cover the dish with foil when that happens and continue baking.
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More Recipes You Might Like
Keep a few comforting vegetable sides in your recipe box: Easy Jiffy Corn Casserole, Cheesy Broccoli Rice Casserole and Crunchy Green Bean Casserole.
Recipe
PrintSouthern Yellow Squash Casserole
Southern yellow squash casserole combines tender squash, cream cheese and sharp cheddar beneath a buttery Ritz-Parmesan topping. A comforting side that serves 12.
- Prep Time: 20 minutes
- Draining and resting: 40 minutes
- Cook Time: 90 minutes
- Total Time: 150 minutes
- Yield: 12 side-dish servings 1x
- Category: Side Dish
- Method: Baking
- Cuisine: Southern
Ingredients
Squash Filling
- 4 medium yellow squash, sliced into ¼-inch rounds
- 2 teaspoons kosher salt
- 8 tablespoons salted butter, divided
- 1 medium yellow onion, chopped
- 2 medium garlic cloves, minced
- 8 ounces cream cheese, softened
- 2 large eggs
- 1 cup freshly grated sharp cheddar cheese
- Freshly ground black pepper, to taste
- Cooking spray or additional butter, for the baking dish
Cracker Topping
- 1 sleeve Ritz crackers, crushed, about 32 crackers
- 4 tablespoons salted butter, melted
- ½ cup grated Parmesan cheese
- Freshly ground black pepper, to taste
Instructions
- Place the squash in a colander over the sink. Toss with the kosher salt and leave to drain for 30 minutes. Rinse briefly, then blot thoroughly with paper towels.
- Heat the oven to 350°F with a rack in the center. Grease a 2 ½-quart baking dish.
- Stir the cream cheese in a large mixing bowl until smooth. Beat in the eggs one at a time, then stir in the cheddar and a little black pepper.
- Heat 1 tablespoon of the butter in a large skillet over medium-low heat. Add the onion and cook, stirring occasionally, until softened, about 4 minutes. Stir in the garlic and cook for another 30 seconds. Transfer to a bowl.
- Divide the remaining 7 tablespoons butter among batches of squash. Cook each batch over medium heat in an uncrowded layer, turning occasionally, until tender, about 10 to 13 minutes. Lower the heat if the squash starts browning before it softens.
- Transfer the cooked squash to a colander and let any excess liquid drain away. Allow the vegetables to cool for about 5 minutes before combining them with the egg mixture.
- Fold the squash, onion, and garlic into the cream cheese mixture. Spread evenly in the prepared baking dish.
- Combine the cracker crumbs, melted butter, Parmesan, and black pepper in a separate bowl. Scatter over the casserole.
- Bake for 55 to 65 minutes, until the filling is set in the center, the edges are bubbling, and the topping is golden. If the crumbs brown too quickly, loosely cover the dish with foil.
- Let stand for 10 minutes before serving.
Equipment
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Buy Now → Notes
Substitutions: Zucchini can replace some or all of the yellow squash; salt and drain it the same way. Mild cheddar, Monterey Jack, or a combination can replace the sharp cheddar.
Serving suggestions: Serve alongside roast chicken, baked ham, pork chops, or meatloaf. Green beans or a crisp green salad balance the rich filling.
Make ahead: Refrigerate the assembled filling, covered, for up to 2 days. Keep the topping separate and add it just before baking. A cold casserole may need additional baking time; follow the baking dish manufacturer's guidance about moving it from the refrigerator to the oven.
Storage: Refrigerate leftovers in a covered container within 2 hours of baking. Use within 3 to 4 days. Reheat individual portions in the microwave or warm larger portions, covered, in a 350°F oven until heated through.
Freezing: Freeze the baked, cooled casserole in tightly wrapped portions for up to 2 months. Thaw overnight in the refrigerator before reheating. The squash may release a little moisture, and the topping will soften; uncover near the end of reheating to help it crisp.
Timing: Prep 20 minutes; cook about 1 hour 30 minutes; additional time 30 minutes for draining squash and 10 minutes for resting. Total about 2 hours 30 minutes. Batch count affects cooking time.














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