Skip the cold side dishes and wow the crowds with this fast and fresh recipe for German Potato Salad with Warm Bacon Dressing. This German-style favorite is tangy, savory and loaded with big-time bacon flavor.

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Step aside, all you chilly, starchy side dishes. It’s no longer cool to be … cool. Because there’s a new recipe in town and it is h-o-t hot. As in, German Potato Salad with Warm Bacon Dressing HOT.
There’s no mayonnaise. There’s no sour cream. There’s no cool and creamy dressing that leaves this dish destined for the bottom of your fridge or cooler, where it’ll remain until someone finally declares, “There’s no potato salad?!”
So here we are in all our warm bacon dressing glory. It’s certainly savory, but that’s not all. It gets a little tang courtesy of some whole grain mustard and a bit-o-bite via a solid splash of apple cider vinegar. Cook it all together with sweet yellow onions and we’ve got a flavor trifecta that will knock your socks, shoes and speedos off.
So whether you’re in need of a summertime potluck dish that will leave guests begging for the recipe, or you’re simply tired of potatoes covered in two types of cheese and butter (Does this actually happen to people?), allow me to introduce you to your new starchy, super-hot BFF. Take it away, Potato Salad with Warm Bacon Dressing!
Best Potatoes for Potato Salad
For making potato salad, you want a waxy potato, not a starchy one. Waxy potatoes like small red potatoes and Yukon Golds hold their shape when boiled and tossed with the warm bacon dressing. Avoid starchy potatoes like russets. They’re better suited for something like roasted garlic mashed potatoes where that starchiness works in your favor. Here, they’ll fall apart the moment that warm vinaigrette hits them.
I prefer small red potatoes for this German potato salad recipe. And one more thing: leave the skins on. They add color, a little texture and save you a step. Win, win and WIN!
Here’s everything else you’ll need:
- Bacon: The star of the show and the base of the dressing. Eight slices get chopped and cooked until crispy, then set aside. Don’t wipe out the pan. Every drop of those drippings goes into the dressing.
- Yellow onion: They’re sweeter and milder than white onions, which means they soften beautifully in the bacon drippings without overpowering the dressing. Red onion is too sharp and will compete with the vinegar.
- Apple cider vinegar: Don’t substitute white vinegar here. Apple cider vinegar has a rounder, fruitier flavor that plays beautifully with the bacon fat and mustard. I wouldn’t recommend red or white wine vinegar either. Both are too sharp for this dressing.
- Whole grain mustard: My secret ingredient and what sets this recipe apart from most German potato salads, which call for Dijon. I love the added texture and slightly more complex flavor whole grain mustard brings. Those little mustard seeds make this salad look as good as it tastes. Dijon works as a substitute if that’s what you have, but you’ll lose that textural element.
- Sugar: I know it seems odd to add sugar to a savory dressing, but just like my turkey salad, it helps balance the acidity of the vinegar. Trust me on this one. One taste and I guarantee you’ll never leave it out.
- Fresh chives: Stirred in at the very end for a pop of color and a fresh, mild oniony finish.
How to Make German Potato Salad
Add the potatoes whole and unpeeled to a large pot of well-salted water. Don’t skip the salt. It seasons the potatoes from the inside out as they cook. Boil until fork-tender, about 15 minutes. You’ll know they’re done when a fork slides in with no resistance, not just at the skin but all the way through to the center.
Drain the potatoes and spread them out on a cutting board to cool completely before cutting into quarters. Warm potatoes are fragile and will fall apart when you cut them, so patience pays off here.
Success tip: You want to toss the potatoes with the warm dressing while they’re at room temperature, not ice cold from the fridge and not piping hot from the pot. Room temp potatoes absorb the dressing like a sponge. This is the step that separates a good German potato salad from a great one.

Warm Bacon Dressing
While the potatoes cool, it’s time to make the star of this side dish: the warm bacon dressing. Start by cooking the bacon until crispy and all the fat has rendered. Transfer to a plate with a slotted spoon and whatever you do, don’t wipe out the pan. Those drippings left behind are the foundation of the dressing.
Add the onions and cook in the drippings until soft and translucent, then stir in the vinegar, mustard, sugar, salt, pepper and water. Simmer the dressing until it has reduced to about one cup. A properly reduced dressing is concentrated and glossy and will coat every piece of potato rather than pooling at the bottom of your serving bowl.
Pour the warm dressing over the potatoes, add the crispy bacon and toss to combine. Stir in the chives and serve immediately while the bacon dressing is still warm.

FAQs
Absolutely! The flavors really intensify as it sits. Store in an airtight container in the fridge for up to 4 days. To reheat, warm gently in a skillet over low heat with a splash of water or microwave in 30-second increments, stirring in between.
Two likely culprits: the potatoes were overcooked, or they were stirred too vigorously when tossing with the dressing. Boil just until fork-tender and always fold gently rather than stir. Red potatoes and Yukon Golds hold up much better than russets, which is another reason we stick with waxy potatoes for this recipe.
Add a little more sugar, a teaspoon at a time, tasting as you go. The sweet and tangy balance in this dressing is very much a personal preference. Some people love it puckery, others prefer it on the sweeter side.
The bacon fat is what gives the dressing its rich, smoky depth so skipping it will significantly change the character of the dish. If you need a bacon-free version, use olive oil in place of the drippings and add a pinch of smoked paprika to replicate some of that smokiness.
Hot, Warm or Cold: How Should You Serve It?
One of my favorite things about this recipe: it’s just as delicious warm, at room temperature or straight from the fridge. Traditionally German potato salad is served warm when the dressing is freshly made and the bacon is crispy, but if I’m bringing this to a potluck or barbecue I’ll serve it room temp.
Making it ahead and stashing it in the fridge overnight lets the flavors deepen and the dressing concentrate in the best possible way. Just note that the potatoes will absorb salt as they sit, so give it a quick taste right before serving and add a pinch more if needed.

If you’re serving this as part of a summer BBQ spread, this German potato salad goes with just about everything. Try it alongside chicken schnitzel, flank steak or oven baked ribs, with a basket of pretzel rolls on the side for soaking up every last drop of that warm bacon dressing. And for dessert? Fresh peach cupcakes or the easiest-ever ice cream cake would be a perfect finale. However you serve it, I guarantee it will be the first bowl emptied.

Ingredients
- 2 pounds small red potatoes, unpeeled
- 8 slices uncooked bacon, chopped
- 1 1/2 cups diced yellow onions
- 1/2 cup apple cider vinegar
- 1 1/2 Tablespoons whole grain mustard
- 1/4 cup sugar
- 2 Tablespoons chopped fresh chives
Instructions
- Boil the potatoes in a large pot of water until they are fork-tender, about 15 minutes. Drain the potatoes then allow them to cool completely. Cut the potatoes into quarters then add them to a large bowl.
- Add the bacon to a large sauté pan set over medium heat. Cook the bacon until it is crispy and all of the fat has rendered off. Using a slotted spoon, transfer the bacon to a plate, leaving 3 tablespoons of the drippings in the pan.
- Add the diced onions to the pan and cook, stirring, until the onions are translucent. Stir in the apple cider vinegar, whole grain mustard, sugar, 1 teaspoon salt, ½ teaspoon pepper and ½ cup water. Simmer the mixture for 3 minutes until it has reduced to 1 cup.
- Pour the dressing over the potatoes, add the cooked bacon and toss to combine. Stir in the chives and serve warm.
Kelly’s Notes
- Leave the skins on. They add color, texture and save you a step.
- Make Ahead: Cook the potatoes, make the dressing and toss everything together up to 24 hours in advance. Store in an airtight container in the fridge. The flavors will deepen and intensify overnight. Reheat gently in a skillet over low heat with a splash of water, microwave in 30-second increments, stirring in between, or serve cold or at room temp. Give it a taste before serving and add a pinch of salt if needed.
- Storage: Keep leftovers in an airtight container in the fridge for up to 4 days.
- ★ Did you make this recipe? Don’t forget to give it a star rating below!
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Recipe by Kelly Senyei of Just a Taste. Please do not reprint this recipe without my permission. If you'd like to feature this recipe on your site, please rewrite the method of preparation and link to this post as the original source.







Loved the mustard in the recipe; it definitely took it to the next level! Thanks!
So glad you enjoyed it, Vickie!
Delicious.My mom did the same recipe but added (cooked) green beans. I also mix chopped ( raw) Belgium endive.Take me a few years back.
Love reading this, Raymonde!
It was great- loved it!
Will make it over and over again!♥️
So glad you enjoyed the recipe, Leslie!
I made the for the 4th and it was outstanding. I did sub pure maple syrup for the sugar ( and x3 the recipe) – it all turned out so nicely. Served at room temp and enjoying it now for my left over lunch.
Awesome! I’m so thrilled you enjoyed the recipe, Kathy!
we discovered this recipe awhile ago and it has become my family’s go to potato salad. It is so good!!
I’m thrilled your family has been enjoying the recipe, Lori!
This recipe looks awesome. I chose to prepare a potato salad for a New Year’s Eve gathering and I think this would be perfect. However, I would have to make it ahead of time and would have little opportunity to do any of the prep after arriving at the event. Would this stand up to being prepped several hours ahead? Suggestions for re-heating before serving? Thanks so much. I will definitely let you know how it goes!
Absolutely, Ron! The flavors really intensify as it sits. It can be microwaved before serving, or I’d even suggest just keeping it at room temp.
Now the only potato salad my family requests, so delicious and easy to make
I’m so happy to read this, Megan!
I tried the potato salad recipe and oh my it was fantastic. My son ,who is a picky eater loved it. He told me you have to make it again. Thank you…
This is what I love to read, Debra! I’m so glad your family enjoyed the recipe!
I made this for the first time on Friday evening with pork schnitzel and it was amazing!!! I only had a 1.5# bag of baby gold potatoes, but I followed the rest of your recipe to the letter. I like that the potatoes are quartered instead of sliced. When I poured the hot dressing over the potatoes, I thought there was too much because of being short on the volume of potatoes, but it worked out great…I used the extra to spoon over the pork schnitzel! My husband and son raved about it, and there was only about 1 small serving left over after the 3 of us were finished with our meal (they both had seconds). I posted pics on my fb page and have been asked for the recipe lol! We will definitely be making this again!
AMAZING! I’m so glad your family enjoyed the recipe, Heather!
This is very tasty warm salad. I also sauteed celery with the onion based on our family’s personal taste and everyone liked it.
I’m so thrilled you enjoyed the recipe, Nancy!
Is this salad ok cold
Yes! Great to serve warm, room temp or cold :)
I’m not one for following recipes to the letter, instead using them loosely as a guideline, but I did follow this recipe. I wanted to try it as-is, first. It was wonderful! The only thing I did add was a little Lawry’s seasoning salt & seasoned pepper to the dressing. My husband & I loved this different take on potato salad & will definitely be making it again!
I’m so thrilled you enjoyed the recipe, Anita!
Just discovered this recipe & it’s a winner in our house!!
I’m so thrilled to read this, Clare!
aways a favorite
I’m thrilled you’ve been enjoying the recipe, Rod!
Quick and easy and oh so tasty!
Woohoo! I’m so glad you enjoyed the recipe, Larry!
This was really easy to make and tasted out of this world. Exceptional!!!!
I’m so thrilled you enjoyed the recipe, Martin!
Loved this. Made it for a casual dinner party and it was a hit. I was a bit worried it would be too much sugar but I made it as written and I thought it was a perfect balance. Definitely going to be in my regular rotation of recipes.
Excellent! I’m thrilled you enjoyed the recipe!
Delicious!
I’m so glad you enjoyed the recipe, Elizabeth!
I made this for Memorial Day yesterday for the first time. It was delicious and I will be making this on a regular basis for sure!!! P.s., My kids loved it too and they’re picky eaters. Thanks for this yummy recipe.
You are so welcome, Jacki! I’m thrilled you enjoyed the recipe!
I am going to try this. I make a mean mayo based potato salad that my family and friends LOVE! My husband is partial to the german style and I have not been successful in making I….will try this tomorrow
Awesome! Enjoy, Colleen!
I cannot think of any better dressing than Hot Bacon, unless you combine with Honey Mustard! I am a Texan and when Houston’s restaurant surprised us all in the 80’s with this dressing combination for their salads! Just trust me, we couldn’t get enough! I only like potatoes, but with this dressing I am assured I will love your potato salad! TY
There’s just something about a warm bacon dressing that makes people weak in the knees!
Yep German potato salad it is!!
This is basically how “German Potato Salad” from my region in Bavaria is made. The only addition is some beef stock (not water) and herbs BUT then it is refrigerated for several hours (best overnight) to allow potatoes to absorb dressing and flavors to meld. It is also brought to room temperature before being served.
I haven’t tried your recipe yet, but I was raised on this kind of potato salad. In my city of Milwaukee, having a large German population, this is called German potato salad. This was the only potato salad my mom ever made and I make 10 batches of this to 1 mayo type.