Cheesy Green Chile Squash Casserole

It’s important to me to prepare meals for my family that are home cooked and include fresh, natural ingredients. The trouble is finding recipes that are kid friendly and still enjoyable for us adults. This baked summer yellow squash and green chile casserole recipe fits the bill because your kids will love the cheese and you will love all the flavorful veggies hidden in there. Some people may also know this dish as a green chili squash casserole. There is common confusion between chili and chile but this recipe uses Hatch chile that is why I say it is a green chile squash casserole.

I became acquainted with this Baked Summer Squash and Green Chile Casserole dish at a dinner party I attended recently and it was a huge hit. When I asked for the recipe, I came to find out that the overwhelming flavor was coming from the green chiles my girlfriend had purchased online from a little family farm in Hatch, NM called Berridge Farms. I had to try them out because the green chile in the dish was mild enough for everyone, but still bursting with flavor! I ordered the chiles for myself the very next day and have been using them in our family meals ever since. This Green Chile casserole recipe is so easy and a particular favorite at our dinner table. I hope you enjoy it as much as we do!

Squash Casserole With Green Chiles Recipe

Yellow squash casserole is a delicious and comforting dish that’s perfect for using up fresh summer squash. It combines tender squash with a creamy, savory filling and a crispy, golden topping, creating a satisfying blend of textures and flavors. This casserole is easy to prepare, budget-friendly, and can be customized with various cheeses, herbs, or breadcrumbs to suit your taste. It’s a versatile side dish that pairs well with grilled meats, roasted vegetables, or can even be enjoyed on its own. Plus, it’s a great way to sneak extra vegetables into your meal while delivering a warm, homemade touch to any table.

Hatch Green Chile Casserole Ingredients:

• 6-8 small yellow squash (or zucchini), sliced
• 1 tbsp butter
• 1 tbsp olive oil
• one small yellow onion, diced
• 2 slices of toast, diced (or panko bread crumbs or crumbled Ritz crackers )
• ½ lb grated Monterrey Jack Cheese (or sharp cheddar cheese)
• 3 slices cooked bacon, crumbled
• 1 tsp garlic salt
• 6-8 roasted, peeled, chopped Hatch green chiles
• 1 14.5 ounce can of diced tomatoes, drained

How To Make Green Chile and Squash Casserole

1. In a large skillet over medium heat to medium-high heat, add the butter, olive oil, yellow summer squash and onion. Saute for about 10 minutes, or until tender.
2. Add tomatoes and green chiles to yellow squash/onion mixture and cook for another 3-5 minutes allowing the flavors to come together.
3. In 8×8 baking dish (or 2-quart casserole dish), layer squash mixture, diced toast (or cracker crumbs), crumbled bacon, and grated cheese.  Finish with a layer of cheese.
4. Bake at 350 degrees F in a preheated oven for 25 minutes until golden brown.

This very easy casserole side dish tastes almost a bit like a New Mexican themed lasagna! It is a very tasty way to get your veggies. This squash casserole with bacon and Ritz crackers (a buttery cracker) is sure to be a popular side dish at your next gathering.

Printable Easy Squash Casserole Recipe Card

Squash Casserole Pro Tips

A yellow squash casserole can be creamy, cheesy, and full of flavor if made right! Here are some pro tips to elevate your dish:

1. Choose the Right Squash

• Pick small to medium-sized yellow squash, as they are more tender and have fewer seeds.
• Avoid overly large squash, which can be watery and have a tougher texture.

2. Perfect the Topping

• Use buttery diced toast, crushed crackers (like Ritz), or panko breadcrumbs mixed with melted butter for a crispy topping.

3. Bake It Right

• Bake uncovered at 350-375°F (175-190°C) until bubbly and golden brown (about 25-30 minutes).
• Let it rest for 5-10 minutes before serving to help it set.

Conclusion

A yellow squash casserole is a comforting and versatile dish that highlights the natural sweetness and tenderness of fresh squash. It’s simple to make, combining sliced squash with onions, a creamy sauce, and a crispy, golden breadcrumb or cracker topping. This casserole is perfect for using up an abundant summer harvest, offering a cozy side dish for family gatherings or holiday meals. Plus, its mild, buttery flavor pairs well with a variety of main courses, making it a crowd-pleaser that’s both satisfying and easy to prepare. The Hatch green chiles give it a little kick but still fairly mild for the whole family to enjoy.

This is a delicious side dish. If you make the green chile squash casserole, share a picture @familyfocusblog and let us know how you like it! Have you tried New Mexico Hatch green chiles before?  Do you call them summer squash or yellow squash?

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