German Potato Salad
This German Potato Salad has traditional components like bacon, mustard, and vinegar combined with next-level enhancements like caramelized onions and honey! This restaurant-quality recipe will make a regular appearance at holiday tables, BBQs, and potlucks!

German Potato Salad
What I love most about German Potato Salad is that it’s served warm and not mayo based. (Win/win in my book.)
I love taking traditional recipes like this and putting my own next-level spin on them! In this case, it’s the caramelized onions (cooked in bacon drippings) that puts this homemade dressing over the top! Honey is used instead of sugar for a richer flavor element long with crispy bacon, shallots, white vinegar, Dijon, and creamy baby potatoes!
Oh- and this dressing is made complete with a finishing technique called “monter au beurre“, where we swirl in a little cold butter at the end for a smooth, velvety finish!
You absolutely have to try this recipe, the flavor profile is unmatched! Don’t miss my pro tips below!
How to Make It
Note: This is an overview. See recipe card below this post for ingredient quantities and full instructions.
Cook the bacon until crispy and roughly chop once cooled. Leave 1 heaping tbsp. bacon drippings in the skillet.

Gently boil the potatoes until just fork tender. Drain, slice, and season with salt/pepper.

Caramelize the onions in the reserved bacon drippings. Soften the shallots, then add the sauce mixture. Bring to a boil, then reduce heat to low. Add half of the chopped bacon.

Remove from heat and swirl in cold butter and stir in parsley. Add the cooked potatoes and stir to combine. Transfer to a serving bowl and sprinkle with remaining bacon along with chives and dill. Serve warm!

Pro Tips
Potatoes:
- Baby gold potatoes are the ideal size and consistency for this recipe. (They hold their shape but are also nice and creamy.) They can be boiled whole in a short amount of time which is convenient and ensures that they don’t get waterlogged by slicing them into smaller pieces.
- Baby red potatoes are a good alternative and hold their shape well.
- If using larger red or Yukon gold potatoes, cut them in half prior to boiling. The larger the slices, the longer they’ll take to soften all the way through.
Butter:
- This dressing is made complete with a finishing technique called “monter au beurre”, where we swirl a little cold butter in a the end for a smooth, velvety finish!
Make-Ahead Tips:
- Consider making 50% more dressing since the potatoes will continue to absorb it during storage.
- Only add half of the dressing and save the rest for when you’re reheating it.
- Let it cool completely after preparing it, then cover tightly and refrigerate for up to 24 hours.
- Add a few additional tablespoons of butter when reheating if desired.
- Be careful not to overcook the potatoes so that they don’t get crumbly when reheated.
How to Reheat:
- Stovetop (best method):Place the potatoes in a large skillet and add 3 tablespoons of chicken broth.
- Cover and heat through over medium-low heat. Lift the lid to stir gently on occassion. It’ll take about 12 minutes or so.
- Oven (2nd best):Place the potatoes in a large skillet and add 3 tablespoons of chicken broth. Cover and bake at 300°F for 20-30 minutes.
Storage
- Store in an airtight container and refrigerate for up to 3 days.
- You may also freeze it if desired, unlike mayo-based potato salad recipes, this will hold up much better.

Tools For This Recipe
(Amazon affiliate links*)- Check out all of my kitchen essentials here.
- 3.6 Quart Enabled Cast Iron Casserole Dish with Lid– This is what is pictured in this recipe for cooking the bacon/making the sauce.
- Extra Large Cutting Board– Makes it easy to spread out the potatoes to cut/season them after boiling.
- 8-inch Chef’s Knife
- Large Serving Bowl
- Serving Spoon– The one I used that’s pictured in this recipe.
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Try These Next
- Tomato Salad
- Tortellini Pasta Salad
- Macaroni Salad
- Swedish Meatballs
- Olive Oil Bread Dip
- Egg Salad
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German Potato Salad
Ingredients
Salad
- 2 ½ lbs. baby gold potatoes, washed and unpeeled. See notes
- 6-7 slices thick-cut bacon, drippings reserved
- 1 small yellow onion, diced
- 1 small shallot, minced
- Salt/pepper
Dressing
- ½ cup chicken broth
- ¼ cup white vinegar
- 1 tablespoon Dijon mustard
- 1 tablespoon honey
- 1 tablespoon cold butter
- 2 tablespoons fresh parsley, roughly chopped
Toppings
- Chives
- Dill
Instructions
- Pro Tip: Measure out all ingredients while the bacon cooks.
- Cut the bacon in half and arrange it in an even layer in a large, high-walled skillet. Cook slowly over medium-low heat. Tilt the skillet every so often to spoon out drippings and use kitchen tongs to flip the bacon every so often as it cooks. Once crispy, set aside on a paper towel lined plate and roughly chop once cooled. Leave 1 heaping tablespoon of drippings in the skillet.
- Once the bacon is cooked, add the potatoes to a large pot and cover with 2 inches of water. Gradually bring the water to a gentle boil and salt the water once a boil is reached. (I use 1 heaping tbsp. kosher salt) Cook until just fork tender, but not overly soft. (About 12-15 minutes for baby potatoes.)
- Once cooked, drain well and spread out on a large cutting board. Cut them in half and sprinkle them with an even layer of salt and pepper.
- Meanwhile, add the diced onions to the same skillet used to cook the bacon over medium heat. Cook for for 20-25 minutes, stirring regularly. This will caramelize them which adds amazing depth of flavor to the sauce.
- Add the minced shallots and cook for 1-2 more minutes. Add the chicken broth, white vinegar, Dijon, and honey and stir to combine. Bring to a boil, then reduce heat to low. Stir in HALF of the bacon. Cover partially until the potatoes are ready.
- Remove the sauce from the heat and swirl in the cold butter and stir in the parsley.
- Add the warm potatoes and use a silicone spatula to stir to combine and coat. Transfer to a serving bowl and sprinkle with remaining bacon along with chives and dill. Serve warm!
Notes
- Baby gold potatoes are the ideal size and consistency for this recipe. (They hold their shape but are also nice and creamy.) They can be boiled whole in a short amount of time which is convenient and ensures that they don’t get waterlogged by slicing them into smaller pieces.
- Baby red potatoes are a good alternative and hold their shape well.
- If using larger red or Yukon gold potatoes, cut them in half prior to boiling. The larger the slices, the longer they’ll take to soften all the way through.
- Consider making 50% more dressing since the potatoes will continue to absorb it during storage.
- Only add half of the dressing and save the rest for when you're reheating it.
- Let it cool completely after preparing it, then cover tightly and refrigerate for up to 24 hours.
- Add a few additional tablespoons of butter when reheating if desired.
- Be careful not to overcook the potatoes so that they don't get crumbly when reheated.
- Stovetop (best method):Place the potatoes in a large skillet and add 3 tablespoons of chicken broth.
- Cover and heat through over medium-low heat. Lift the lid to stir gently on occassion. It'll take about 12 minutes or so.
- Oven (2nd best):Place the potatoes in a large skillet and add 3 tablespoons of chicken broth. Cover and bake at 300°F for 20-30 minutes.
Nutritional information is an estimate and is per serving. There are 8 servings in this recipe.
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