This Squash Casserole is guaranteed to become your new favorite way to eat yellow squash! Pulled out of my grandmas old recipe cards, I’ve updated this old-fashioned Southern recipe with some new flair, while keeping the classic flavors. A layer of creamy squash, topped with crunchy, buttery Ritz crackers, this casserole is full of great textures and flavors, and it’s easy to make!

squash casserole topped with ritz cracker topping in baking dish with serving spoon

Every time I’m at my parents house in Oklahoma, I peruse through my grandmas old recipe cards and cookbooks to see if anything new catches my eye. Last Christmas I saw a recipe for squash casserole that intrigued me.

It was hand-written from her friend Helen and included yellow squash mixed with pimentos, cream of chicken soup, sour cream, water chestnuts and onions. The casserole was topped with a box of stuffing mix combined with butter. This sounded like such an interesting combination that I had to try it for myself.

After testing the recipe exactly as it was written (probably sometime in the 80s) I knew that I could make a few tweaks to improve on the flavor and texture. I first started by tossing out the water chestnuts. I found the texture mixed in with the creamy squash to be very odd. Next, I replaced the stuffing with a Ritz cracker topping, like on my famous Broccoli Casserole.

The result was delicious! A perfectly creamy squash casserole, topped with a perfectly buttery, crispy cracker topping. If you have lots of yellow squash, or zucchini, growing in your summer garden, you have to try this casserole!

Fortunately you can find summer squash most places year-round now. And you can always find zucchini at the grocery store, so you can make this recipe anytime of the year! It’s the perfect side dish for holidays, bbq’s or parties.

ingredients for squash casserole on white wood board

Ingredients

  • Yellow squash – also called summer squash, this squash is very similar to zucchini. The main difference is the shape. The yellow squash has a “crookneck” where zucchini is normally straight. They have a very similar taste and can be used interchangeably, or together, in this recipe.
  • Onion – I recommend a yellow onion for it’s neutral flavor, but any onion will work.
  • Butter – I recommend unsalted butter, so that you can control how much salt you add to the recipe. If using salted butter, reduce the added salt down to 1/2 teaspoon.
  • Salt – this will help pull out some of the moisture in the squash and season the casserole.
  • Sour cream – for making a deliciously creamy base for the casserole.
  • Pimentos – these mild, sweet peppers are found jarred in the grocery store, usually near the pickles and olives. They add a sweet flavor and pop of color to this casserole.
  • Cream of chicken soup – you can also use cream of mushroom soup to make the recipe vegetarian.
  • Buttery round crackers (such as Ritz) – these buttery crackers make the perfect topping for the casserole. You could use another type of cracker, or breadcrumbs, if you prefer, but I definitely recommend giving the Ritz a try!

Instructions

I’ve included step by step photos below to make this recipe super easy to follow at home. For the full detailed recipe instructions and ingredient quantities, scroll to the recipe card at the bottom of this post. 

  1. Cook the squash. It’s important to pre-cook the squash before assembling the casserole to release excess moisture in the squash. This will prevent the casserole from ending up watery. Slice the squash, then add it to a large skillet with melted butter, diced onions and salt. Cook for 10 minutes, stirring occasionally.
  2. Drain the squash. Transfer the squash from the skillet to a large colander in the sink. Let the squash drain for 5 minutes to get rid of any additional liquid. Gently press on the squash with the back of a spatula to release any excess moisture.
  3. Combine sour cream, pimentos, and cream of chicken soup in a large bowl. Stir in the drained squash and onions.
  4. Prepare the topping. In a medium bowl, combine melted butter with cracker crumbs.
  5. Assemble the casserole. Transfer the creamy squash mixture to a greased 9 inch x 13 inch casserole dish. Sprinkle the cracker topping over the casserole in the baking dish. Place in the oven and bake, uncovered, for 30 minutes.
baked squash casserole in baking dish with serving spoon

Storage and reheating

Store leftover squash casserole in an airtight container in the fridge for up to 6 days. You can reheat individual portions of the casserole in the microwave for 2 minutes.

To reheat the entire casserole, cover it with foil and place it in the oven at 350°F for 10-15 minutes, or until it’s heated through. To crisp up the cracker topping, turn the oven from bake to broil, remove the foil and broil the casserole for 1-2 minutes.

Additions and substitutions

To add a protein to this squash casserole recipe, and make it a complete meal, mix in 2 cups cooked, shredded chicken, or cooked, diced turkey to the squash mixture.

For a cheesy addition, add ½ cup grated parmesan cheese, or sharp cheddar cheese, to the cracker mixture on top of the casserole.

To make the casserole vegetarian, replace the cream of chicken soup with cream of mushroom soup.

To make the casserole gluten free, use gluten-free crackers or breadcrumbs for the topping.

What to serve it with

This casserole is delicious with everything from a holiday meal, to a backyard bbq. And it’s even easy enough to pair with a weeknight meal! Try it with any of these tasty main dishes.

squash casserole on plate with fork
squash casserole in baking dish with serving spoon
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Squash Casserole

This Squash Casserole is guaranteed to become your new favorite way to eat yellow squash! Pulled out of my grandmas old recipes cards, I've updated this old-fashioned Southern recipe with some new flair, while keeping the classic flavors. A layer of creamy squash, topped with crunchy, buttery Ritz crackers, this casserole is full of great textures and flavors, and it's easy to make!

Ingredients

  • 2 tablespoons butter
  • 3 pounds yellow squash (or zucchini), cut into ¼ inch slices
  • 1 ½ cups onion, diced
  • 1 teaspoon salt
  • 8 ounces sour cream
  • 4 ounce jar pimentos, chopped
  • 10.5 ounce can condensed cream of chicken soup

For the topping

Instructions

  • Preheat the oven to 350°F.
  • Melt 2 tablespoons butter in a large skillet, or dutch oven, on the stove over medium-high heat.
  • Add the sliced squash, diced onions and salt to the skillet. Cook for 10 minutes, stirring occasionally.
  • Transfer the squash from the skillet to a colander over the sink and drain for 5 minutes.
  • In a large bowl combine the sour cream, pimentos, and cream of chicken soup. Gently stir in the squash and onions.
  • To make the topping, melt the ¼ cup butter in a bowl, then stir in the crushed crackers.
  • Grease a 9” x 13” baking dish and add the squash mixture.
  • Top with the cracker topping.
  • Place in the oven, uncovered, and bake for 30 minutes.

Notes

  • Store leftover squash casserole in an airtight container in the fridge for up to 6 days. You can reheat individual portions of the casserole in the microwave for 2 minutes. To reheat the entire casserole, cover it with foil and place it in the oven at 350°F for 10-15 minutes, or until it’s heated through. To crisp up the cracker topping, turn the oven from bake to broil, remove the foil and broil the casserole for 1-2 minutes.
  • To add a protein to the casserole, and make it a complete meal, mix in 2 cups cooked, shredded chicken, or cooked, diced turkey to the squash mixture.
  • To make the casserole vegetarian, replace the cream of chicken soup with cream of mushroom soup.
  • To make the casserole gluten free, use gluten-free crackers or breadcrumbs for the topping.
  • This recipe will easily serve 8 people as a stand-alone side dish, or 12 or more people, if serving it with a main dish and multiple sides.

Nutrition Facts

Calories 264kcal (13%)Carbohydrates 21g (7%)Protein 5g (10%)Fat 19g (29%)Saturated Fat 10g (50%)Polyunsaturated Fat 2gMonounsaturated Fat 5gCholesterol 42mg (14%)Sodium 690mg (29%)Potassium 586mg (17%)Fiber 3g (12%)Sugar 8g (9%)Vitamin A 1226mg (25%)Vitamin C 46mg (56%)Calcium 87mg (9%)Iron 2mg (11%)
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