Creamy Cheesy Squash Casserole with Crunchy Topping

This Squash Casserole is a comforting, Southern-style side dish that transforms yellow squash into a creamy, flavorful casserole topped with a crunchy, buttery cracker crust. Inspired by a handwritten recipe from my grandmother’s collection, I updated the classic flavors to improve texture and make the casserole easier to love. With a creamy squash base, tangy sour cream, mild pimentos, and a crisp Ritz-style cracker topping, this dish is simple to prepare and perfect for summer gardens, holiday tables, or weeknight dinners.

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

Table of contents

  • Ingredients
  • Instructions
  • Storage and reheating
  • Additions and substitutions
  • What to serve it with
  • More casserole recipes

When I visit my parents in Oklahoma I often browse my grandmother’s handwritten recipe cards. One year I found a squash casserole that combined yellow squash, pimentos, sour cream, and cream of chicken soup with a boxed stuffing topping. After testing that version, I adjusted the recipe for better texture and flavor—removing water chestnuts and swapping the stuffing for a buttery cracker topping produces a creamier interior and a crisp, golden finish.

This updated squash casserole works well with yellow squash or zucchini, or a mix of both. It’s forgiving, straightforward, and delivers classic Southern comfort with a satisfying contrast between the soft filling and the crunchy cracker topping. You can make it year-round using grocery store zucchini, or serve it fresh from the garden during summer.

ingredients for squash casserole on white wood board

Ingredients

  • Yellow squash – also called summer squash. Very similar to zucchini; they can be used interchangeably. For this recipe, slice into 1/4″ rounds.
  • Onion – diced; yellow onion is recommended for a mild, balanced flavor.
  • Butter – unsalted is preferred so you can control salt; if using salted butter, reduce additional salt.
  • Salt – draws out moisture from the squash and seasons the dish.
  • Sour cream – creates a rich, creamy base.
  • Pimentos – jarred, chopped pimentos add mild sweetness and color.
  • Condensed cream of chicken soup – provides body and savory flavor; swap for cream of mushroom to make the dish vegetarian.
  • Buttery round crackers (such as Ritz) – crushed and mixed with melted butter for the crunchy topping; use gluten-free crackers for a gluten-free version.

Instructions

Note: Pre-cooking the squash helps remove excess moisture and prevents a watery casserole.

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cream of chicken soup, sour cream and pimentos in glass bowl
sliced yellow squash, cream of chicken soup, sour cream and pimentos combined in a glass bowl
crumbled crackers combined with butter in a glass bowl
creamy squash mixture in a casserole dish
  1. Preheat the oven to 350°F (175°C).
  2. Cook the squash: Melt 2 tablespoons butter in a large skillet over medium-high heat. Add the sliced squash, diced onion, and 1 teaspoon salt. Cook for about 10 minutes, stirring occasionally, until the squash is softened and some moisture has released.
  3. Drain the squash: Transfer the cooked squash and onions to a colander and let drain for 5 minutes. Press gently with a spatula to remove excess liquid.
  4. Combine the filling: In a large bowl, mix 8 ounces sour cream, the chopped pimentos (4 ounces), and one 10.5-ounce can condensed cream of chicken soup. Fold the drained squash and onions into this creamy mixture until evenly coated.
  5. Make the topping: Melt 1/4 cup unsalted butter and stir in about 30 crushed buttery crackers until coated and crumbly.
  6. Assemble: Grease a 9″ x 13″ baking dish. Spread the squash mixture in the dish and sprinkle the cracker topping evenly over the surface.
  7. Bake: Bake uncovered for 30 minutes, until the casserole is hot and the topping is golden. If you prefer an extra-crispy topping, broil briefly for 1–2 minutes while watching carefully.
baked squash casserole in baking dish with serving spoon

Storage and reheating

Store leftovers in an airtight container in the refrigerator for up to 6 days. Reheat single portions in the microwave for about 2 minutes. To reheat a whole casserole, cover with foil and bake at 350°F for 10–15 minutes until warmed through. For a crisp topping after reheating, remove the foil and broil 1–2 minutes, watching closely so it doesn’t burn.

Additions and substitutions

Add a protein: Stir in 2 cups cooked shredded chicken or diced cooked turkey to make this casserole a heartier meal.

Make it cheesy: Sprinkle 1/2 cup grated Parmesan or sharp cheddar into the cracker topping or the filling for extra flavor.

Vegetarian option: Use condensed cream of mushroom soup instead of cream of chicken.

Gluten-free: Replace crackers with gluten-free crackers or gluten-free breadcrumbs for the topping.

What to serve it with

This versatile squash casserole pairs well with many main dishes. Try it alongside grilled or roasted meats, smoked pork or turkey, or simple weeknight proteins such as pan-seared chicken or steak. It also complements holiday mains like glazed ham or roasted poultry and works well on barbecue menus.

squash casserole on plate with fork

More casserole recipes

If you enjoy easy, crowd-pleasing casseroles, consider trying other favorites such as corn casserole with cheddar, broccoli cheese casserole, or a cheesy tater tot breakfast casserole. These dishes are great for family meals, potlucks, and holiday sides.

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Corn Casserole with Cheddar Cheese

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Broccoli Cheese Casserole

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Brussel Sprout Casserole with Mushrooms

squash casserole in baking dish with serving spoon

Squash Casserole

Creamy yellow squash mixed with sour cream, pimentos, and condensed soup, baked with a buttery cracker topping for a classic Southern side.
Servings: 8 people
Prep Time: 25 minutes
Cook Time: 30 minutes
Total Time: 55 minutes
Author: Whitney Bond

Ingredients

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

For the topping

  • 1/4 cup unsalted butter, melted
  • About 30 buttery crackers (like Ritz), crushed

Instructions

  1. Preheat oven to 350°F.
  2. Melt 2 tablespoons butter in a large skillet over medium-high heat.
  3. Add sliced squash, diced onions, and salt. Cook 10 minutes, stirring occasionally.
  4. Transfer squash to a colander and drain 5 minutes, pressing gently to remove excess liquid.
  5. In a large bowl combine sour cream, pimentos, and condensed soup. Fold in the drained squash and onions.
  6. Mix melted 1/4 cup butter with crushed crackers for the topping.
  7. Grease a 9″ x 13″ baking dish and add the squash mixture, then top evenly with the cracker crumbs.
  8. Bake uncovered for 30 minutes until hot and the topping is golden.

Notes

  • Store leftovers refrigerated in an airtight container for up to 6 days.
  • To reheat, microwave individual portions for about 2 minutes, or reheat the whole casserole covered with foil at 350°F for 10–15 minutes.
  • Add 2 cups cooked shredded chicken or diced turkey to make a complete meal.
  • Substitute cream of mushroom soup to make vegetarian; use gluten-free crackers for a gluten-free topping.
  • This recipe generously serves 8 as a side, or up to 12 when served with other dishes.

Nutrition Facts

Calories: 264 kcal
Carbohydrates: 21 g
Protein: 5 g
Fat: 19 g
Saturated Fat: 10 g
Sodium: 690 mg
Fiber: 3 g
Vitamin C: 46 mg