Old fashioned onion gravy is such a simple and easy from scratch recipe that delivers incredible flavor with minimal effort. The caramelized onions are mixed into a seasoned brown gravy to make a sauce that youโll want to smother everything with, it really is that good.
Onion Gravy
This onion gravy is seriously SO good! Itโs rich, savory, sweet, and full of flavor. Onions caramelized in butter are one of my favorite foods, and they taste incredible in this homemade French onion gravy.
A little tang from the red wine vinegar, lots of flavor from thyme, garlic, a hint of sage, sweetness from the onions and balsamic vinegar, and depth from Worcestershire sauce makes this the best easy caramelized onion gravy because itโs so flavorful.
Ingredients
Onions: Yellow onions are the best option here because their higher sugar content makes them great for caramelizing. Theyโre also sturdy enough to stand up to the longer cooking time. Even though yellow onions are the classic choice, white onions also work. For a milder, slightly sweeter flavor, sweet onions like Vidalia are a great option, too.
Butter: This is the fat weโre using to cook the onions, and it adds a rich, creamy flavor.
Sugar: Adding just a little bit of granulated sugar speeds up the caramelization process. You can use light brown sugar instead if youโd like to add a subtle molasses flavor.
Red Wine Vinegar: This adds a bright, tangy, acidic flavor that cuts through and helps balance out the rich flavors of the butter and beef broth.
Garlic, Thyme, and Sage: These aromatics make the gravy incredibly flavorful, and season it with herby, savory flavors.
Beef Broth: This is the liquid weโre using to make up the body of the gravy. Beef broth pairs so well with cooked onions, and very much gives this gravy a flavor similar to French onion soup.
Worcestershire Sauce: This adds depth of flavor with savory and umami elements.
Salt and Pepper: Salt enhances all of the other flavors, and the slight heat in pepper balances out the rich flavors. Keep in mind that freshly cracked pepper is spicier than ground pepper.
Cornstarch: This is the thickener weโre using to give the gravy the perfect consistency. I love using cornstarch instead of flour to thicken gravies because itโs clear and makes gravy so glossy.
Balsamic Vinegar: This is added right at the end and elevates this gravy from really good to truly phenomenal. It has a sweet and complex flavor that pairs so well with the caramelized onions and beef broth.

How To Make Onion Gravy
Caramelize the Onions: Melt butter in a medium saucepan. Add the sliced onions, sprinkle in the sugar, and stir to combine. Partially cover and cook, stirring every few minutes, until the onions are reduced and caramelized. Reduce the heat if they begin to brown too quickly. (See the recipe card below for the full printable instructions.)

Deglaze the Pan: Whisk in the water, red wine vinegar, garlic powder, thyme, and sage. Bring to a boil and cook until the liquid has reduced.
Add the Broth: Whisk in the beef broth, Worcestershire sauce, salt, and pepper. Bring back to a boil, then reduce the heat, cover, and simmer until the flavors have melded together.

Thicken and Serve: Stir the cornstarch and cold water together in a small dish to form a slurry. Whisk the slurry and balsamic vinegar into the pan and simmer briefly until the gravy has thickened. Serve and enjoy! See the recipe card below for the full written instructions, including ingredient amounts, cooking times, and helpful tips, etc.

Pro Tips
- Donโt Rush Caramelizing the Onions: The flavor that you get from caramelizing the onions is the heart and soul of this recipe, so donโt rush this step. Letting them cook low and slow is what develops that incredible sweet and savory flavor.
- Slice the Onions Thinly and Evenly: Slicing the onions thinly helps them caramelize faster, and slicing them evenly ensures that theyโll cook evenly. You donโt want smaller pieces to burn while you wait for thicker pieces to finish cooking.
- Always Use Cold Water to Make Your Slurry: When you add cornstarch to hot liquid, it clumps up. Thatโs why you need to mix it with cold water to make a slurry before adding it to the pan.

Does Onion Gravy Go With Beef?
Yes! Thereโs a reason that caramelized onions and beef are such a classic combination. The natural sweetness of the caramelized onions in this onion gravy perfectly complements the rich flavor of beef.
What Is Onion Gravy?
Itโs a rich, savory sauce thatโs made by slowly caramelizing onions before mixing in beef broth, garlic, herbs, and a thickener. The flavors are savory, sweet, and comforting.
Itโs different from traditional pan gravy because itโs made without drippings. Instead, itโs made in a saucepan. That means you can make it any time because you donโt have to roast any meat first.

What Spices Enhance Onion Gravy?
The best spices to incorporate in onion gravy are garlic, thyme, and sage. Garlic adds savory depth, dried thyme adds an earthy, herby element, and sage adds a warm flavor. Worcestershire sauce and balsamic vinegar aren’t spices, but they function similarly by adding in complexity and umami.
What Onions Do You Use For Onion Gravy?
Yellow onions are the best for onion gravy because they have a naturally higher sugar content, which makes them caramelize beautifully and helps them develop a deep, sweet flavor. Theyโre also sturdy enough to stand up to longer cooking times. I wouldnโt use red onions because they will change the color and flavor profile of the gravy.

What To Serve With Onion Gravy
Bangers and mash are the classic dish you normally serve onion gravy with. This is such a great simple onion gravy for sausages. I also love smothering my mashed potatoes with it. Some of my favorite recipes to serve with it are:
- Chicken Meatloaf
- Frozen Chicken Thighs in the Air Fryer
- Mashed Potatoes without Milk
- Yukon Gold Mashed Potatoes
- Instant Pot Frozen Roast
- Chuck Eye Steak
Storing And Freezing
Let the leftovers cool, then transfer to an airtight container. Store in the fridge for up to 3 days. To reheat, heat on the stove over low heat until itโs warmed through. If itโs too thick, add a splash of broth to loosen it up.

Keep In Touch
Iโd love to hear what you thought of this recipe in the comments or on Instagram!ย @KeyToMyLimeย #KeyToMyLime

Sauce Recipes
If you like this recipe, be sure to check out all of our other gravy recipes. Some reader favorites are:
- Instant Pot Tomato Sauce
- Sausage Gravy
- Au Jus
- White Country Gravy
- Cheese Sauce for Mac and Cheese
- Tomato Gravy
- Ham Gravy
- Turkey Gravy without Drippings
BEST Onion Gravy (Simple Caramelized Onion Gravy Recipe)
Old fashioned onion gravy with caramelized onions is a simple, easy from scratch recipe that delivers incredible flavor with minimal effort.
Ingredients
- 3 Tablespoons butter
- 2 large onions (peeled, cut in half and sliced thin)
- 1 1/2 teaspoons granulated sugar
- 1/4 cup water
- 3 Tablespoons red wine vinegar
- 1 teaspoon garlic powder
- 1 teaspoon dried thyme
- 1/4 teaspoon ground sage
- 2 cups beef broth
- 1 Tablespoon Worcestershire sauce
- 1/2 teaspoon fine sea salt
- 1/2 teaspoon ground black pepper
- 1 1/2 Tablespoons cornstarch
- 1 1/2 Tablespoons cold water
- 1 teaspoon balsamic vinegar (a thick and syrupy one, not a thin and sharp tasting one)
Instructions
- Heat a medium saucepan over medium heat, then add the butter and melt.
- Add the sliced onions to the pan and mix with the butter, breaking the onions apart. Sprinkle in the sugar, and mix again.ย
- Partially cover the pan and cook for 10 minutes. Mix the onions and cook for another 20-30 minutes, stirring every so often (about every 4-5 minutes, partially covering each time). (Stirring frequently is important for even cooking until they are reduced and caramelized.) Reduce the heat slightly during the cooking process. If the onions start to brown too quickly, reduce the heat slightly some more.
- Whisk in the water, red wine vinegar, garlic powder, thyme, and sage. Bring to a boil over medium-high for 2-3 minutes, until the liquid has reduced.
- Whisk in the beef broth, Worcestershire sauce, salt, and pepper.ย
- Bring to a boil again then reduce the heat to low, cover and simmer for 10 minutes.ย
- In a small dish, mix the cornstarch with 1 1/2 Tablespoons of cold water to create a slurry.
- Whisk the slurry and balsamic vinegar into the pan, turn heat up to medium-low and simmer the gravy until your desired thickness has been reached (it needs to simmer for at least 2 minutes to activate the thickening properties of the cornstarch).
- Serve over mashed potatoes or meat, and enjoy!
Nutrition Information:
Serving Size:
1/10Amount Per Serving: Calories: 58Total Fat: 3.6gCarbohydrates: 5.3gFiber: 0.5gSugar: 2.2gProtein: 1g
Nutrition information isn't always accurate.
This homemade onion gravy is sure to be a family favorite in no time!
