This squash casserole recipe is the side dish of the summer! We gave this yellow squash casserole a Southern twist with delicious layers of creamy pimento cheese sauce.

casserole dish filled with creamy squash casserole with pimento cheese!

 

A lot of things all came together to bring us this tried and true yellow squash casserole! I’ve been on a southern comfort food kick lately, summertime has given us plenty of delicious squash to go around, and I’ve been obsessed with making homemade pimento cheese. This all gave me the idea to blend a classic, southern squash casserole with our favorite flavors!

Because summer squash is full of moisture, it took me several attempts to get the perfect texture, but don’t worry. I’ve got all the tips for drying your squash and thickening up that sauce, and you can check the video so you know when yours is just right. You get a creamy, never-watery cheesy squash casserole great for family reunions, summer cookouts, and all your family dinners.

Why you will love this recipe for squash casserole:

  • Southern & Decadent – The rich pimento cheese sauce makes it the perfect country comfort food. It’s rich and full of flavor.
  • Pairs Well with Everything – This fits well with all our best family dinners like Mississippi Chicken, Smoked Boston Butt, Keto Crab Cakes, Fried Pork Tenderloin, and so much more!
  • Low-Carb & Gluten-Free – We skipped the traditional breadcrumb topping and the flour in the sauce to keep this gluten-free casserole keto and diabetic-friendly for the whole family!
creamy squash casserole with pimento cheese sauce in a casserole dish

Summer Squash Casserole Ingredients

  • Squash – I used yellow summer squash, but you could use zucchini if you like. Slice these very thinly and dry them using the tips & steps in the next section.
  • Unsweetened Almond Milk, Heavy Whipping Cream (unwhipped, liquid), and Cream Cheese – These combine for the creamy sauce. Dairy milk can be used in place of almonds if you don’t mind the extra carbs.
  • Garlic Powder, Onion Powder, Salt, and Pepper – All-purpose flavor that brings out the best in everything! The cheese adds a lot of sodium, so consider only salting during serving if you’re watching your sodium levels.
  • Pimentos – You’re looking for a 2 ounce jar of pimento peppers, and you’ll drain those and pat them dry on paper towels. It’s best when they’re dry so that they don’t make the sauce too watery. Don’t worry, these are extremely mild (some even say sweet), so you’re not making a spicy dish.
  • Cornstarch and Water – This slurry thickens up the sauce for the perfect texture.
  • Cheddar Cheese – Shredded. This is used in the sauce and to top the casserole for a beautiful (and delicious) presentation. Feel free to use your preferred blend of cheeses.

How to Dry Squash (and why you can’t skip this step)

Squash has a ton of moisture in it, so you have to work some of that out before baking! If you skip this step, that moisture will come out in the casserole, thinning out the sauce and preventing it from setting. It ruins the texture and waters down the flavor, so you really don’t want to waste your ingredients by skipping the drying process. There are two ways you can do this:

  1. Slice, Chill, and Wait – Two days before you want to cook, slice your yellow squash thinly, then store in an airtight container lined with a lot of paper towels. If you need to stack the slices, keep multiple paper towels between each to collect the moisture. Time does all the work for you, so it’s the perfect quick & effective meal prep task!
  2. Last Minute Salt and Press – If you don’t have two days, you can still make this if you’ve got 30 minutes. Slice your summer squash, place in a colander, and sprinkle with a hearty layer of salt to draw the moisture out. Let it sit for 30 minutes, then press the squash between paper towels to extract the remaining moisture. If you’re sensitive to salt, be careful to wipe as much away as you can.

How to Make Squash Casserole

layers of summer squash and pimento cheese sauce in a casserole dish
  1. Prep – Start by preheating your oven and greasing a 7×11 casserole dish. Set it aside for now.
  2. Make the Sauce – Warm a medium size saucepan or skillet over medium heat, then pour in your milk, heavy cream, cream cheese, garlic powder, and onion powder. Whisk this until it becomes smooth and there are no cream cheese clumps left.
  3. Make it Cheesy and Thick – Stir half of the shredded cheese and all of the drained, dried pimentos into the sauce. Let it simmer, stirring occasionally until the cheese incorporates into the slightly thickened sauce. Whisk your cornstarch and cold water in a small bowl, then stir into the sauce. When it looks too thick, that’s when you know it’s ready!
  4. Assemble the Casserole – Layer your dried squash slices, then cheese sauce, a sprinkle of salt and pepper, then repeat until all ingredients are used up. Top with the remaining shredded cheese.
  5. Bake, Rest, and Serve – Bake the casserole for 20-25 minutes until golden and bubbly. Remove it from the oven and let it sit for 10 minutes to allow the sauce to set. Once thickened, slice and serve.

What to Serve with This Squash Casserole Recipe

Staying low-carb but miss having bread with recipes like this? Try one of these chaffle recipes instead! These work great as a substitute for toast, and they soak up the cheesy sauce beautifully. We also love these keto biscuits for sopping up sauce.

overhead shot of southern squash casserole with pimento cheese
a metal spatula grabbing a serving of squash casserole in a casserole dish

Storage and Reheating

  • Fridge: Cool and store in airtight container in the refrigerator up to 3-4 days.
  • Freezer: I don’t recommend freezing this because the creamy sauce is likely to separate and become grainy.
  • Reheating: Microwave individual portions in 1-minute increments at 50% power. To reheat the entire dish, cover with foil and bake at 350 degrees F for 10 minutes, then remove cover and continue another 10 minutes or until warmed through.

Tips for the Best Southern Squash Casserole

  • Do NOT skip drying your squash! Trust me, there is way too much moisture in this veggie, you will not enjoy the soupy mess you get if you skip the drying process.
  • Swap almond milk for dairy milk if you prefer. We like the flavor and the lower carbs in almond milk, but you can use your preferred milk. Whole or 2% work best to get the perfect texture.
  • Try a blend of cheeses. We absolutely love the sharp cheddar flavor, but you could easily use a mixture of your favorite easy-melting cheeses. Stick to creamy options like pepper jack or gouda, not crumbly cheeses like feta.
  • Give it time to rest. When the sauce is hot, it is very thin and will spill out everywhere if you start cutting into the casserole immediately. Allow 10 minutes for it to thicken up and become a bit sturdier, then serve.

More Amazing Recipes

creamy squash casserole with pimento cheese sauce in a casserole dish

Get the Recipe: Summer Squash Casserole

Prep: 40 minutes
Cook: 30 minutes
Resting Time: 10 minutes
Total: 1 hour 20 minutes
Yield: 6 servings
This southern summer squash casserole recipe has the most delicious pimento cheese sauce! You'll love this with pork tenderloin and fried green tomatoes.
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Ingredients
 

  • 4 medium squash, sliced lengthwise very thinly and dried well*
  • 3/4 cup unsweetened almond milk
  • 1/4 cup heavy whipping cream
  • 3 ounces cream cheese
  • 1 teaspoon garlic powder
  • 1 teaspoon onion powder
  • salt and pepper to taste
  • 1 2-ounce jar pimentos, (about 1/4 cup packed) drained and patted dry
  • 1 tablespoon corn starch + 1 tablespoon cold water
  • 2 cups cheddar cheese, divided

Equipment

Instructions
 

  • Preheat the oven to 400 degrees F.
  • Make the cheese sauce: heat a medium size saucepan or deep skillet over medium heat. Add the milk, heavy cream, cream cheese, garlic powder, and onion powder. Whisk until smooth.
  • Once smooth, stir in 1 cup shredded cheddar and the drained pimentos. Simmer, stirring occasionally until the mixture has slightly thickened. Whisk 1 tablespoon corn starch with 1 tablespoon cold water, stir until the sauce until it looks almost too thick, remember the squash will release a lot of moisture as it bakes.
  • Grease a 7×11 dish. Layer squash, then cheese sauce, salt and pepper to taste, repeating until used up. Top with the remaining cheddar.
  • Bake 20-25 minutes until golden and bubbly.
  • Let sit 10 minutes before serving so the sauce sets.

Notes

  • * Note: For best results, slice the squash 2 days ahead of time and store in an airtight container layered with paper towels to dray out moisture. This is the difference between a creamy casserole and a watery one. Short on time? Salt the slices, let sit in a colander 30 minutes, then press dry with paper towels.
  • Net carbs per serving: 6.4g
Serving: 1 slice (1/6th of recipe), Calories: 274kcal, Carbohydrates: 8g, Protein: 11.9g, Fat: 22g, Cholesterol: 63.7mg, Sodium: 339.9mg, Fiber: 1.6g, Sugar: 4g
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