Usually means: Butter infused with caramelized onions.
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We found 6 dictionaries that define the word onion butter:

General (6 matching dictionaries)
  1. onion butter: Vocabulary.com
  2. onion butter: Dictionary.com
  3. onion butter: Rhymezone
  4. onion butter: FreeDictionary.org
  5. onion butter: Mnemonic Dictionary
  6. onion butter: TheFreeDictionary.com

Definitions from WordNet (onion butter)

noun:  butter blended with minced onion


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