This homemade cream of mushroom soup is my go-to when I need something creamy and comforting in a hurry. It’s easy and quick, and I love that it’s ready to use in all my favorite casseroles.

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So Much Better Than The Canned Stuff
I used to think making cream of mushroom soup from scratch would be complicated, but it turns out it only takes about 10 minutes—and the flavor is so much better than the canned stuff.
This recipe was inspired by all those casseroles that call for a can of soup, but with real, fresh ingredients instead. The broth, mushrooms, milk, and flour come together into a creamy, smooth base that works perfectly in casseroles like chicken and rice or green bean, and it’s just as good on its own.
I love that it’s easy to double or freeze so there’s always some on hand when comfort food season hits – it works with everything. I’ve even used it in my old fashioned ham and potato casserole. If you’ve never made cream of mushroom soup before, this is the recipe to try—it’s simple, cozy, and reliable every time.

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Key Ingredients and Substitutions
- Butter: Adds richness and helps sauté the mushrooms. You can substitute olive oil or a dairy-free butter if needed.
- White button mushrooms: Diced small so they blend into the soup easily. Cremini or baby bella mushrooms work great too for a deeper flavor.
- Water: Acts as the liquid base. You can replace it with low-sodium chicken or vegetable broth for added depth.
- Better Than Bouillon: Adds concentrated flavor. Chicken or vegetable versions both work here. If using a bouillon cube, dissolve it first.
- Onion powder: Adds mellow onion flavor without chunks. For a stronger onion taste, sauté a few tablespoons of minced onion with the mushrooms.
- Garlic powder: Adds background flavor that blends well with the mushrooms. You can use fresh garlic if preferred.
- Whole milk: Makes the soup creamy without needing heavy cream. Use 2% for a lighter texture or non-dairy milk for a vegan version.
- All-purpose flour: Thickens the soup into a creamy base. Gluten-free flour blends can work as a substitute if needed.
- Salt and pepper: Essential for balancing all the flavors. Adjust to taste depending on the saltiness of your bouillon.

How to Make Homemade Cream of Mushroom Soup
Preparation

Rinse the mushrooms under cool water and pat them dry with a paper towel. Finely dice the mushrooms and set them aside. Measure out the remaining ingredients and have them within reach before you begin cooking.

Step 1 – Sauté the Mushrooms
Set a medium saucepan over medium heat. Add the butter and let it melt completely. Stir in the diced mushrooms and cook for 6–7 minutes, stirring occasionally, until they’re softened and have released their juices.

Step 2 – Add the Seasonings and Broth
Pour in the water, then stir in the Better Than Bouillon, onion powder, garlic powder, salt, and pepper. Mix well and bring the mixture to a gentle simmer.
Step 3 – Whisk the Milk and Flour
In a small bowl, whisk together the milk and flour until completely smooth with no lumps. This mixture will act as the thickener for the soup.

Step 4 – Thicken the Soup
Slowly pour the milk-flour mixture into the saucepan while stirring constantly. Continue stirring over medium heat for about 1 minute, or until the soup thickens to your desired consistency.
Step 5 – Serve or Use in Recipes
Use the soup immediately in casseroles or other recipes that call for cream of mushroom soup. You can also serve it as-is for a simple, creamy mushroom soup.
Lynette’s Tip
Use a food chopper to finely chop the mushrooms. Smaller pieces release their juices faster and blend better into sauces.
More Homemade Base Recipes You’ll Enjoy

Homemade Cream of Mushroom Soup
Ingredients
- 2 Tablespoons butter
- 8 oz white button mushrooms diced very small
- 1 ½ Cups water
- 1 ½ teaspoons Chicken Better Than Bouillon
- ½ teaspoon onion powder
- ¼ teaspoon garlic powder
- ½ teaspoon salt
- ½ teaspoon ground pepper
- 1 Cup whole milk
- ½ Cup all purpose flour
Instructions
- Start by rinsing the mushrooms and drying them with a paper towel. Place them on a cutting board and finely dice them into small pieces.
- Set a medium saucepan on the stove and turn the heat to medium. Add the butter and let it melt completely. Once melted, add the chopped mushrooms. Cook them for about 6–7 minutes, stirring occasionally, until they soften and release their juices.
- Next, add the water, chicken bouillon, onion powder, garlic powder, salt, and pepper to the pan. Stir everything together and bring it to a gentle simmer.
- In a small bowl, whisk the milk and flour until smooth with no lumps. Slowly pour this mixture into the saucepan, stirring constantly. Keep stirring for about one minute, until the soup thickens.
- Add it right into your favorite casserole recipes or store it in the refrigerator covered for up to 3 days.
Notes
Variations:
- Swap the base: Use chicken broth in place of the water and bouillon for a more traditional flavor.
- Use different mushrooms: Try baby bella, cremini, or a mix of wild mushrooms for deeper, earthier flavor.
- Add fresh herbs: A pinch of thyme or chopped parsley stirred in with the broth adds a bright, savory layer.
Nutrition
Recipe FAQs
Better Than Bouillon is a concentrated paste that adds depth. If you don’t have it, use one chicken bouillon cube dissolved in the water, or even chicken broth instead of Better Than Bouillon and water in the recipe.
This homemade version works as a 2:1 substitute for the condensed canned variety in most recipes. This recipe makes 2 cans worth or 2.5 cups of cream of mushroom soup.
Make sure your flour is fully blended with the milk before adding it to the pan. Also, stir constantly after adding to avoid lumps and help it thicken properly.




