This scalloped potatoes and ham casserole layers tender Yukon Gold potatoes, smoky ham, and creamy thyme sauce in one comforting dish. It is hearty, reliable, make-ahead friendly, and ideal for family dinners or holiday leftovers.

This is the kind of warm, satisfying meal that works especially well when you need to turn leftover ham into a complete dinner. Everything bakes together in one casserole dish, so you get plenty of flavor without having to prepare several separate components.

The creamy sauce is made from butter, onion, flour, milk, and chicken broth. Dried thyme gives it a gentle savory flavor that complements the ham without overpowering the potatoes. As the casserole bakes, the thin potato slices absorb some of that sauce while still holding their shape.

A layer of melted sharp cheddar is optional, but it adds a rich finish and an appealing golden surface. Serve the casserole after a short resting period so the sauce can settle and each portion lifts neatly from the dish.

Ingredients for Creamy Ham Scalloped Potatoes

Yukon Gold potatoes: Their naturally buttery flavor and firm texture make them especially suitable for layered casseroles. Slice them about ⅛ inch thick so they cook evenly.

Cooked ham: Cut the ham into small cubes that can be distributed between every potato layer. Leftover baked ham works particularly well.

Unsalted butter: Creates the base of the creamy sauce and softens the onion without adding too much salt.

Yellow onion: Finely chopped onion brings mild sweetness and savory depth to the sauce.

All-purpose flour: Thickens the butter, milk, and broth into a smooth sauce that coats the potatoes.

Whole milk: Gives the casserole its creamy consistency. Lower-fat milk can work, although the finished sauce may be slightly less rich.

Chicken broth: Loosens the sauce and adds another layer of savory flavor.

Dried thyme: Provides a subtle herbal note that pairs naturally with potatoes and ham.

Salt and black pepper: Season the sauce carefully, remembering that cooked ham and chicken broth may already contain salt.

Sharp cheddar cheese: This optional topping melts over the casserole during the final minutes of baking.

Cooking Steps

STEP 1: Heat the oven to 350°F and lightly grease a 9 × 13-inch baking dish. Prepare the potatoes and ham before beginning the sauce so you can assemble the casserole while the sauce remains warm and easy to spread.

STEP 2: Melt the butter in a medium saucepan over medium-low heat. Add the finely chopped onion and cook for several minutes, stirring occasionally, until it becomes soft and translucent. Keep the heat moderate so the onion softens without browning.

STEP 3: Stir the dried thyme and flour into the buttery onion mixture. Continue cooking for 1–2 minutes while stirring frequently. This brief cooking time removes the raw flour taste and creates a pale roux that will thicken the sauce.

STEP 4: Reduce the heat and begin adding the milk in small amounts. Whisk thoroughly after each addition to smooth out the mixture before adding more. The sauce will initially look very thick, but it will gradually become creamy as the rest of the milk is incorporated. Whisk in the chicken broth, then season with black pepper and a conservative amount of salt.

STEP 5: Bring the sauce to a gentle boil, whisking frequently so it does not scorch on the bottom of the saucepan. Let it bubble for about one minute, just until it thickens enough to coat the back of a spoon. Remove it from the heat.

STEP 6: Arrange one-third of the thinly sliced potatoes in the bottom of the baking dish, overlapping them slightly when needed. Add one-third of the cubed ham and spoon one-third of the sauce evenly over the top. Repeat these layers two more times, ending with enough sauce to cover the uppermost potato slices.

STEP 7: Cover the dish tightly with foil and bake for 50 minutes. Remove the foil and bake uncovered for another 25–35 minutes. Check the center with a thin knife or fork rather than testing only the outer edges. The casserole is ready when the utensil slides easily through the potatoes.

STEP 8: Add the shredded cheddar during the final 15 minutes of baking, when using it. Once the potatoes are tender and the cheese has melted, remove the casserole from the oven. Let it rest for at least 15 minutes before serving so the hot sauce can thicken and settle around the layers.

Perfect Pairings

A crisp green salad is a refreshing contrast to the rich sauce and tender potatoes. Try mixed greens, cucumber, red onion, and a tangy vinaigrette rather than a heavy creamy dressing.

Roasted green beans or asparagus also work well. Their lightly browned edges and fresh flavor balance the creamy casserole while keeping the meal simple.

For a cozy dinner, serve the casserole with steamed broccoli or roasted Brussels sprouts. Either vegetable can be prepared while the potatoes finish baking and resting.

Helpful Tips

  • Use a mandoline slicer or a sharp chef’s knife to keep the potato slices close to the same thickness. Uneven slices can leave some potatoes soft while others remain firm.
  • Whisk the milk into the roux gradually. Adding all the liquid at once makes flour lumps more likely and requires more work to smooth the sauce.
  • Taste the sauce before adding much salt. The ham, broth, and optional cheddar all contribute saltiness as the casserole cooks.

Can I assemble the casserole in advance?

Yes. Assemble the layers, cover the baking dish, and refrigerate it for up to one day before baking. Let the dish stand at room temperature while the oven heats. A chilled casserole may need an additional 10–15 minutes in the oven before the potatoes become fully tender.

Why are my potatoes still firm?

The slices may be too thick, the foil may not have sealed the dish securely, or the casserole may simply need more time. Cover it again if the surface is becoming too dark, then continue baking until a knife passes easily through the center layers.

Do I need to peel Yukon Gold potatoes?

Peeling is optional because Yukon Gold potatoes have thin, tender skins. Scrub them thoroughly if you plan to leave the skins on. Peeling creates a more traditional, uniform appearance, while leaving the skins saves preparation time and adds a little texture.

Can I use a different kind of potato?

Russet potatoes can be substituted, but their starchier texture may create a softer casserole and a slightly thicker sauce. Red potatoes hold their shape well but can remain firmer. Yukon Gold potatoes provide a useful balance between creaminess and structure.

Is the cheese topping necessary?

No. The casserole remains creamy and flavorful without cheddar because the homemade sauce already coats every layer. Add cheese when you want a richer, more indulgent finish, or leave it off for a simpler potato-and-ham dish.

Keeping Leftovers Fresh

Allow leftovers to cool, then transfer them to a covered container or tightly cover the baking dish. Refrigerate for up to three or four days. Because the sauce continues to thicken as it chills, individual portions may look firmer the following day.

Reheat servings in the microwave in short intervals until hot throughout. Covering the plate helps prevent the potatoes from drying out. A small splash of milk can be added around the portion before reheating if the sauce seems especially thick.

For a larger amount, cover the casserole with foil and warm it in a 325°F oven until the center is heated through. Remove the foil during the final few minutes if you want to refresh the cheese topping.

The casserole can be frozen, although the texture of the potatoes and dairy sauce may become slightly softer after thawing. Freeze cooled portions in airtight containers for up to two months. Thaw them overnight in the refrigerator before reheating for the most even results.

Scalloped Potatoes and Ham Casserole

Thinly sliced Yukon Gold potatoes, savory cooked ham, and a smooth thyme-seasoned cream sauce are arranged in layers and baked until tender. An optional covering of sharp cheddar cheese adds a rich, melted finish to this comforting casserole.
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Course: Casserole, Main Course
Cuisine: American
Keyword: Scalloped Potatoes and Ham Casserole
Cook Time: 1 hour 15 minutes
Resting Time: 15 minutes
Total Time: 1 hour 30 minutes

Ingredients

For the Sauce

  • 3 cups whole milk preferably for a richer consistency
  • ½ teaspoon dried thyme
  • cup all-purpose flour
  • Fine salt and ground black pepper adjusted to taste
  • ½ cup chicken broth
  • 1 small yellow onion finely chopped
  • cup unsalted butter

For the Casserole

  • 3 pounds Yukon Gold potatoes cut into slices approximately ⅛ inch thick
  • 2 cups cooked ham diced into ½-inch cubes

Optional Topping

  • 1 cup sharp cheddar cheese shredded

Instructions

  • Preheat the oven to 350°F (175°C). Lightly coat a 9 × 13-inch baking dish with butter or nonstick cooking spray, then place it aside.
  • Melt the unsalted butter in a medium saucepan set over medium-low heat. Add the finely diced onion and cook for 3–5 minutes, or until softened and translucent.
  • Mix the dried thyme and flour into the butter and onion. Cook for 1–2 minutes, stirring frequently, until a pale roux forms. Do not allow the mixture to brown.
  • Lower the heat. Pour in the milk gradually, whisking thoroughly after each addition to prevent lumps. The mixture may become quite thick at first but will loosen and smooth out as the remaining milk is incorporated.
  • Whisk in the chicken broth, then season the sauce with salt and ground black pepper. Increase the heat and bring the mixture just to a gentle boil. Allow it to boil for 1 minute, whisking as needed, until thickened.
  • Spread one-third of the sliced potatoes across the bottom of the prepared baking dish. Distribute one-third of the cubed ham over the potatoes, followed by one-third of the prepared sauce.
  • Repeat the potato, ham, and sauce layers twice more, finishing with the remaining sauce spread evenly over the surface.
  • Cover the baking dish securely with aluminum foil. Bake for 50 minutes.
  • Remove the foil and continue baking for another 25–35 minutes, or until the potatoes are tender when tested with a fork.
  • When approximately 15 minutes of baking time remain, scatter the shredded sharp cheddar evenly over the casserole. Return the dish to the oven and bake until the cheese is fully melted.
  • Remove the casserole from the oven and let it stand for at least 15 minutes before cutting and serving.
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Notes

Whole milk produces the richest and creamiest sauce, although another milk may be used if necessary.
The cheddar topping is optional. For additional color and freshness, garnish the finished casserole with chopped parsley before serving.

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