Caramelized Onions and Mushrooms

Published April 5, 2022, updated July 28, 2025

PREP 10 minutes
COOK 30 minutes
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Caramelized Onions and Mushrooms! If you’re looking for a flavorful, savory side dish that goes well with just about any meal, you’ve found it. Sauteed mushrooms and onions make a perfect pair, caramelized to perfection in this simple recipe.

Caramelized Onions and Mushrooms in a white dish on a striped tea towel.

There are some side dishes or extras that immediately upgrade a meal: Caramelized Onions & Mushrooms are one of them!

Rich, flavorful and buttery, they make the perfect compliment to a variety of proteins such as chicken or steak, or a fantastic topping for things like hot sandwiches, pizzas and more!

Can’t get enough caramelized onions? Check out these other recipes where they make an appearance: Caramelized Onion & Goat Cheese Cauliflower Mash, Caramelized Onion & Goat Cheese Cauliflower Mash, and Pistachio Pesto Skillet Pasta with Caramelized Brussels Sprouts.

This recipe is naturally gluten-free and vegetarian, and can be made vegan and dairy-free. (See Variations & Substitutions area below.)

A closeup of Caramelized Mushrooms and Onions in a white dish with a sprig of rosemary on top.

Ingredients

  • Olive Oil
  • Butter
  • Onions
  • Mushrooms
  • Garlic
  • White wine (or water or broth)
  • Sea Salt
  • Fresh herbs

Instructions

Start by heating the olive oil and butter in a large skillet over medium heat. Once the butter is melted and everything is shimmering, add the sliced onions. Let them cook low and slow, stirring every so often, until they soften and start to take on a deep golden color. This usually takes about 10 to 15 minutes, so don’t rush it!

Next, stir in the sliced mushrooms. They’ll release quite a bit of moisture at first, but just keep cooking and stirring occasionally until the liquid evaporates and the mushrooms are browned and tender—about another 8 to 10 minutes.

A large pan filled with onions and mushrooms at the beginning of the caramelization process.

Add the minced garlic and cook for about a minute, just until it’s fragrant. Then pour in the white wine (or whatever liquid you’re using) to deglaze the pan, scraping up all the delicious browned bits from the bottom. Let it simmer for a couple minutes until the liquid has mostly cooked off.

Note: If the mixture starts to dry out or burn during cooking, you may need to add more liquid. I typically have extra water on standby to keep the mixture moistened until the onions are fully caramelized.

Finish by seasoning everything with sea salt and stirring in the fresh herbs.

A large pan filled with onions and mushrooms about 5 minutes into the caramelization process.

Serve it warm as a savory topping, a side dish, or even spooned over toast or mashed potatoes.

Variations & Substitutions

  • Add 1–2 teaspoons of balsamic vinegar (or balsamic glaze) in the last minute of cooking for a touch of sweetness and depth. This is especially great if you’re serving it over steak, burgers, or toast.
  • Stir in a spoonful of grated Parmesan or crumbled goat cheese while still warm. It melts into the mixture and adds richness & makes it perfect for crostini or pasta topping.
  • Add a splash of heavy cream at the end to make a luxurious sauce for grilled chicken, pasta, or grain bowls.
  • Swap in different herbs like sage (great for fall), tarragon (for a French twist), or a pinch of dried Italian seasoning if you’re out of fresh herbs.
  • Double the garlic or add roasted garlic for a deeper, sweeter flavor. You can also add a pinch of red pepper flakes if you like a little heat.
  • Try red wine for a bolder flavor, or use sherry or Marsala for a more decadent finish.
  • Stir in baby spinach, arugula, or kale at the very end until just wilted for a veggie-packed variation.
Caramelized onions and mushrooms in a white dish with a silver serving spoon beside it.

Caramelized Onions and Mushrooms

Caramelized Onions and Mushrooms! Savory caramelized onions and mushrooms are perfect as a side, topping, or mix-in for easy, flavorful meals.
Caramelized onions and mushrooms in a white dish with a silver serving spoon beside it.
Course Side Dish
Prep Time 10 minutes
Cook Time 30 minutes
Total Time 40 minutes
Servings 4 servings
Author Dianna Muscari

Equipment

  • Large skillet or sauté pan
  • Wooden spoon or spatula
  • Chef’s knife
  • Cutting board
  • Measuring spoons
  • Measuring cup for wine or broth

Ingredients  

  • 2 tablespoons olive oil
  • 2 tablespoons butter
  • 2 large yellow or sweet onions thinly sliced
  • 8 ounces mushrooms sliced (cremini, baby bella, or your choice)
  • 2 cloves garlic minced
  • ½ cup white wine or use water or broth
  • ½ teaspoon sea salt
  • 2 teaspoons fresh herbs such as thyme or rosemary, chopped

Instructions 

  • Heat the olive oil and butter in a large skillet over medium heat until melted and shimmering.
  • Add the sliced onions and cook, stirring occasionally, until they begin to soften and turn golden, about 10–15 minutes.
  • Stir in the mushrooms and continue to cook for another 8–10 minutes, until the mushrooms have released their moisture and everything is nicely browned.
  • Add the minced garlic and cook for another minute until fragrant.
  • Pour in the white wine (or your liquid of choice) to deglaze the pan, scraping up any browned bits from the bottom. Let it simmer until most of the liquid has evaporated, continuing to stir and encourage caramelization.
  • Season with sea salt and stir in the fresh herbs.

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Hi, I’m Dianna! I share elevated yet easy recipes and effortless entertaining ideas that help you cook with confidence and host with joy. Around here, fresh ingredients, thoughtful details, and warm hospitality make every meal feel special. I’m so glad you’re here!

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