Grandma Phyllis’ German Potato Salad

German-style potato salad is warm, tangy, and loaded with bacon. It’s nothing like the cold, creamy versions most people think of when they hear “potato salad.” This vinegar-based side dish is served hot or warm, allowing the potatoes to soak up every bit of the bacon-infused dressing while the flavors are still vibrant. The result is a side dish that tastes so much more complex and flavorful than its simple ingredient list would suggest.

This is my husband’s Grandma Phyllis’ recipe, and it’s been a family favorite for generations. Growing up, my husband and his family called it “the German,” and honestly, he’s mentioned more than once that it’s the only potato salad worth making. He didn’t even know mayo-based potato salads existed until he worked at a deli in high school. This warm potato salad was a staple at every summer holiday get together at his Grandma’s house, and it’s still the classic side dish for Sunday hot ham and rolls when the family gathers to watch the Packers game. My husband is incredibly proud to bring his Grandma’s recipe alive again and share it with all of you.

I love that this recipe represents the best of family cooking: simple, straightforward ingredients that come together to create something truly memorable. There’s no fancy technique required, just good ingredients and a little patience prepping and layering your ingredients.

Ingredients for German Potato Salad

• Red baby potatoes. Or as Dave’s family calls them “red salad potatoes”. The goal is to use a waxy variety of potatoes because their low starch content helps them to hold their shape after boiling, allowing them to absorb the warm dressing nicely without turning to mush. In a pinch, Yukon Gold potatoes can also be used.
• Regular-cut bacon (not thick cut). Cook it fresh and reserve every bit of that bacon grease. The bacon drippings provide the flavorful fat for the dressing and adds savory, salty flavor throughout. We like to make oven cooked bacon while the potatoes boil and we begin cutting them to save on time and reduce the mess! While regular-cut bacon is traditional for this recipe, you can use thick-cut bacon in a pinch but you need to be sure to chop it into slightly smaller pieces so it distributes throughout the salad evenly.
• White vinegar. This creates the signature tangy flavor of German potato salad. White vinegar is traditional and provides that sharp, bright taste without overpowering the other flavors.
• Water. Used to dilute the dressing so it coats the potatoes evenly without being too strong or overly concentrated.
• All-purpose flour. A small amount is used to help thicken the bacon grease into dressing consistency that clings to the potatoes instead of pooling at the bottom.
• Granulated sugar. Just a touch of sweetness balances the acidity of the vinegar and brings all the flavors together.
• Green onion greens. Fresh green onions add a mild onion flavor and a nice pop of color to the salad. We’ll just use just the green parts for a milder flavor.
• Celery salt and black pepper. These seasonings are essential to the classic flavor profile of this dish, and you will sprinkle them on between each layer or potatoes.

All ingredient measurements and complete recipe details can be found in the recipe card at the bottom of the page.

Helpful Equipment

You’ll need a 12-inch skillet (or similar large pan) for making the dressing and warming everything together. A paring knife works best for peeling the warm potatoes. A slotted spoon is helpful for removing the cooked potatoes from the water. If you’re making this for a crowd, a large mixing bowl is essential for layering all the ingredients.

How to Make Grandma Phyllis’s Recipe for German Potato Salad

Cook the bacon. As previously mentioned, we recommend using our oven cooked bacon method! Alternatively, you can cook your bacon in a large skillet over medium heat until it’s crispy. Once cooked, transfer it to a paper towel-lined plate and let it cool, then chop it into small, bite-sized pieces.

Reserve the rendered fat (the bacon grease). If doing the oven cooked method, allow the grease to cool down a bit then scrap it off the tinfoil into a bowl and set aside. If cooking on the stove, you can leave the bacon grease in the skillet for making the dressing.

Cook the potatoes. In a large pot of salted water, boil the red potatoes until they’re fork-tender, about 12 to 15 minutes. Test the largest potato to make sure it’s done all the way through.

Once cooked, immediately place the potatoes in an ice bath to stop the cooking process.

Once they’re cool enough to handle, peel and slice them. Use a paring knife to remove the skins, then slice them into about ¼-inch thick slices.

Make the dressing. Warm the reserved bacon grease in the skillet over medium heat. Once warm, add the flour and whisk constantly for about 20 to 30 seconds until it becomes a thick paste (this is a roux and it thickens the dressing).

Then add the vinegar, sugar, and half the water, whisking to combine. Continue whisking to break up any lumps, then add the remaining water in ¼ cup increments, stirring after each addition, until the dressing reaches the right consistency.

TIP: To confirm the best texture, you want the dressing to cling to the back of a spoon without being too thin or too thick.

Assemble the salad. Begin by adding a generous smear of warm dressing across the bottom of a In a large serving dish. bowl,

Then add a single layer of warm potato slices, a sprinkle of bacon, green onions, seasonings, and hearty drizzle of dressing (about ¼ – ⅓ cup of the warm dressing) after each layer of potatoes.

Continue layering until all ingredients are used (or you’ve maxed out the capacity of your bowl), making sure to end on a layer of potatoes that’s generously topped with dressing, bacon, green onions, and seasoning.

Serve warm and enjoy! Serve immediately while it’s still warm or gently reheat it before serving.

How to Serve German Potato Salad

Serve this while it’s warm or at room temperature as a side dish alongside grilled meats, sausages, schnitzel, pork chops, ham, hot dogs, or whatever your favorite main course happens to be. In the picture of my husband above, you’ll see we had it alongside soft pretzels and mustard for our Oktoberfest party too! For my husband’s family, it’s the classic accompaniment to Sunday hot ham and rolls, especially when gathering to cheer on the Packers! It also pairs beautifully with summer grilling, making it a great choice for potlucks or summer barbecues.

Storage and Reheating

Store leftovers in an airtight container in the refrigerator for up to 5 days. Some say this is the ultimate make-ahead dish and the flavors actually deepen and taste better the second day!

You have several options for reheating. Place the salad in an oven-safe dish, cover it with foil, and warm it gently at 325°F for about 20 to 30 minutes. You can also transfer it to a skillet over low heat, stirring occasionally until warm. My mother-in-law usually microwaves it at 50% power for 4-6 minutes, stirring it part way through. Or you can microwave individual portions for 30 to 45 seconds if you prefer.

German Potato Salad Recipe FAQs