Step 1 – Cook the Bacon

In a large skillet over medium heat, cook the diced bacon for 6–8 minutes until golden and crispy.

Remove bacon with a slotted spoon and set aside on paper towels.

Keep about 1 tablespoon of bacon fat in the pan; discard the rest.

Step 2 – Caramelize the Onions

Add butter and olive oil to the skillet with the bacon fat.

Stir in the onions, sugar, salt, and pepper.

Cook over medium-low heat for 25–30 minutes, stirring occasionally, until the onions are soft and golden brown.

If onions start to stick, add a splash of water to deglaze. Let cool slightly.

Step 3 – Prepare the Creamy Base

In a bowl, whisk together sour cream, mayonnaise, and softened cream cheese until smooth.

Add Worcestershire sauce, garlic powder, and onion powder. Mix well.

Step 4 – Combine Everything

Fold the caramelized onions into the creamy mixture.

Add the crispy bacon, reserving a little for garnish.

Stir gently until fully combined. Taste and adjust seasoning if needed.

Step 5 – Chill and Serve

Transfer the dip to a serving bowl, cover, and refrigerate for at least 1 hour.

Garnish with remaining bacon and chives before serving.

Serve with chips, crackers, veggies, or toasted bread.