Warm German Potato Salad with Bacon-Mustard Dressing

My mother-in-law made this the first time we met, and in super-weird fashion I cornered her for the recipe. But it was okay, because she took it as a compliment. And now it’s even better because I can share it with you. I love the crispy bacon, the mustard dressing, and how it’s served warm. Now I’m the one making this whenever she visits us. I hope you love it.

German potato salad is perfect for those times when you want something a little different from the usual BBQ sides. It’s warm, hearty, and has way more flavor than regular potato salad. Plus, it pairs beautifully with grilled bratwurst or simple skillet hamburgers for an easy weeknight dinner.

What You’ll Need

Red potatoes are your best friend here because they won’t fall apart when you toss everything together.

This recipe makes enough to serve 4-6 people as a side dish. To double it, you’ll need to use a really large skillet or do it in two batches when making the dressing so everything heats evenly. Use the recipe card at the bottom of the post to automatically scale everything up for you.

For the Potatoes

• 2 pounds small red potatoes
• 1 teaspoon salt

For the Dressing

• 8 ounces thick-cut bacon
• 2 cups thinly sliced red onion about one medium
• ½ cup low-sodium chicken broth
• ¼ cup apple cider vinegar
• 2 tablespoons Dijon mustard
• 1 tablespoon whole-grain mustard (you can use more Dijon if you don’t have this)
• 1 tablespoon honey
• ½ teaspoon salt
• 2 large cloves garlic grated
• ¼ teaspoon freshly ground black pepper
• 1 scallion thinly sliced

To Garnish

• 2 tablespoons chopped fresh parsley

Step By Step

If you’ve never made German potato salad before, don’t stress! It’s easy. You can make the whole process more efficient by getting your timing right: start the potatoes first, then cook your bacon while they’re simmering.

Step One: Cook The Potatoes

Start by scrubbing your red potatoes – no need to peel them, the skins add great texture and flavor. Drop them in a big pot with about a teaspoon of salt and cover with water by an inch or so. Here’s the thing about cooking potatoes: you want to start them in cold, salted water so they cook evenly all the way through. If you drop them into boiling water, the outsides get mushy before the centers are done.

Bring everything to a boil, then turn it down to a nice simmer. They’ll take about 15-20 minutes depending on size. You’ll know they’re ready when a fork slides in easily but they still hold their shape. Don’t overcook them – mushy potatoes make sad potato salad.

Step Two: Cook The Bacon

Meanwhile, start on the bacon. Cut it into chunky pieces (not too small or they’ll disappear) and toss them in a cold skillet. Starting with a cold pan helps the fat render out slowly, which means crispier bacon and better flavor in your dressing.

Cook over medium heat, stirring occasionally, until they’re golden and crispy but not hard. This takes about 5-7 minutes. Save that bacon fat! You need about 2 tablespoons for the dressing. If you don’t have enough, add a splash of olive oil.

Step Three: Make The Dressing

This is where the magic happens. Toss your sliced red onions into that bacon fat and let them soften for a couple minutes. Then add your chicken broth, vinegar, both mustards, honey, and the rest of your salt. Whisk it all together and bring it to a boil.

Here’s the key: let it simmer for 2-3 minutes until it thickens slightly. You want it to coat the back of a spoon. Add the grated garlic and pepper at the end so the garlic doesn’t get bitter. The dressing should be warm and glossy.

Step Four: Bring it All together

Once your potatoes are cool enough to handle (but still warm), slice them into rounds about ¼-inch thick. Don’t worry about making them perfect – rustic is better here. Add the potatoes, bacon, and scallions right to the skillet with the warm dressing.

Toss everything gently – you want to coat the potatoes without breaking them apart. Taste and add more salt if needed. The warm potatoes will soak up all those flavors.

Step Five: Garnish And Serve

Transfer to your serving dish and sprinkle with fresh parsley. This is best served warm or at room temperature, not cold. The flavors are brightest when it’s just made, but it’ll hold for a few hours if you need to make it ahead.

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