Alice Springs Chicken Casserole was inspired by a dish from Outback Steakhouse that my brother-in-law Kelly turned into a casserole! And I made this with a purchased low-carb Alfredo Sauce to make this creamy chicken casserole easy to make and perfect for a carb-conscious meal!

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Alice Springs Chicken Casserole finished casserole in baking dish

This delicious Alice Springs Chicken Casserole is a recipe I made in the early days of my blog, inspired by a restaurant chicken dish. The popular chicken from Outback Steakhouse features chicken breasts topped with bacon, mushrooms, cheese and a creamy honey-mustard sauce. My brother-in-law Kelly is a fan of Alice Springs Chicken, and years ago he tried making it at home. And those experiments inspired me to turn it into a casserole!

My tasty version uses Alfredo Sauce to replace the honey-mustard topping, and replaces bacon with ham. And it was the low-carb Rao’s Alfredo Sauce with only 2 carbs in one-fourth cup that gave me the push to update the photos for this recipe. Using that sauce makes my version of Alice Springs Chicken so easy to get on the table without adding lots of carbs.

Of course my recipe isn’t as sweet as the the restaurant version with honey! But it’s delicious, and this has been a hit with everyone I’ve made it for. If your family likes these ingredients, I hope you’ll try this tasty chicken casserole for a family dinner that no one will guess is low in carbs!

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What ingredients do you need for this recipe?

(This is only a list of ingredients; please scroll down for complete printable recipe. Or if you use the JUMP TO RECIPE link at the top of the page, it will take you directly to the complete recipe.)

  • boneless skinless chicken breasts
  • olive oil
  • Dried Sage (affiliate link)
  • Dried Thyme (affiliate link)
  • Onion Powder (affiliate link)
  • brown mushrooms
  • lean ham
  • Rao’s Alfredo Sauce (affiliate link), or other low-carb Alfredo sauce
  • sour cream
  • freshly-grated Parmesan Cheese
  • grated Mozzarella cheese
  • grated Monterey Jack cheese

How to make Alice Springs Chicken Casserole with homemade Alfredo Sauce:

If bottled Alfredo sauce is a deal-breaker for you, I think it would be fun to try this a homemade sauce. Check out Creamy Low-Carb Alfredo Sauce or Creamy Cauliflower Sauce, and those options for a low-carb sauce would still keep this recipe gluten-free.

How low in carbs is Alice Springs Chicken Casserole?

This flavorful casserole with chicken, mushrooms, ham, and a creamy sauce has only 7 net carbs per serving with 36 grams of protein.

Alice Springs Chicken Casserole process shots collage

Steps for making Alice Springs Chicken Casserole:

(This is only a summary of the steps for the recipe; please scroll down for complete printable recipe. Or if you use the JUMP TO RECIPE link at the top of the page, it will take you directly to the complete recipe.)

  1. Preheat oven to 375F/190C. Spray casserole dish with nonstick spray or olive oil. (I used a dish that was 9″ x 12″ but it could have been a bit smaller.)
  2. Trim four large chicken breasts and rub with the dried herbs.
  3. Heat 2 tsp. of the olive oil in a large non-stick frying pan and barely brown the chicken, just 3-4 minutes per side. (It will cook more in the casserole dish.)
  4. Remove chicken to cutting board and let it cool. When it’s cool enough to handle, cut the chicken lengthwise into thick strips and and layer in the bottom of casserole dish.  
  5. While the chicken cooks, wash mushrooms if needed, thickly slice, add one more teaspoon oil to the pan and cook until the mushrooms are lightly browned. Layer the mushrooms over the chicken in the casserole dish.
  6. Cut ham into cubes, and add the last teaspoon of olive oil and saute the ham in the same frying pan until it’s slightly browned. Layer browned ham over the mushrooms.
  7. Mix sour cream and grated Parmesan with the Rao’s Alfredo Sauce (affiliate link).   
  8. Pour the sauce over the chicken, mushrooms, and ham.
  9. Sprinkle with grated Mozzarella and Monterey Jack Cheese, or any white cheese you prefer.
  10. Bake about 20 minutes covered, or until the cheese is mostly melted.
  11. Uncover and bake about 20 minutes more, or until the top is nicely browned.
  12. Serve the casserole hot, and enjoy.

Make it a Low-Carb Meal:

Alice Springs Chicken Casserole would be great with any of these low-carb side dishes:

Alice Springs Chicken Casserole close-up photo

Want more recipes featuring Rao’s Pasta Sauce?

Check out Recipes with Rao’s Pasta Sauce and Pizza Sauce to see more great ideas using Rao’s, which is the lowest-carb purchased pasta sauce I’ve found.

Weekend Food Prep:

This recipe has been added to a category called Weekend Food Prep  where you’ll find recipes you can prep or cook on the weekend and eat during the week!

Alice Springs Chicken Casserole close-up photo
Yield: 8 servings

Alice Springs Chicken Casserole

Prep Time 20 minutes
Cook Time 40 minutes
Total Time 1 hour

My brother-in-law Kelly’s version of Alice Springs Chicken from Outback inspired my low-carb version of Alice Springs Chicken Casserole. And the whole family will love this, and no one will guess it's low in carbs!

Ingredients

  • 4 very large boneless skinless chicken breasts
  • 4 tsp. olive oil, divided
  • 1/4 tsp. dried sage
  • 1/4 tsp. dried thyme
  • 1/4 tsp. onion powder
  • 1 pound brown mushrooms, washed and thickly sliced
  • 6 oz. lean ham, diced into cubes
  • 1 fifteen-ounce jar Rao's Alfredo Sauce (see notes)
  • 1/4 cup sour cream (not needed if you make your own sauce)
  • 1/4 cup freshly-grated Parmesan Cheese (not needed if you make your own sauce)
  • 1/2 cup grated Mozzarella cheese
  • 1/2 cup grated Monterey Jack cheese

Instructions

  1. Preheat oven to 375F/190C. Spray casserole dish with nonstick spray or olive oil. (I used a dish that was 9" x 12" but it could have been a bit smaller.)
  2. Trim four large chicken breasts and rub with the dried herbs.
  3. Heat 2 tsp. of the olive oil in a large non-stick frying pan and barely brown the chicken, just 3-4 minutes per side. (It will cook more in the casserole dish.)
  4. Remove chicken to cutting board and let it cool. When it's cool enough to handle, cut chicken lengthwise into thick strips and and layer in the bottom of casserole dish.
  5. While the chicken cooks, wash mushrooms if needed, and thickly slice. Add one more teaspoon oil to the pan and cook until the mushrooms are lightly browned. Layer the mushrooms over the chicken in the casserole dish.
  6. Cut ham into cubes, add the last teaspoon of olive oil, and saute the ham in the same frying pan until it's slightly browned. Layer browned ham over the mushrooms.
  7. Mix sour cream and grated Parmesan with the Alfredo Sauce.
  8. Pour the sauce over the chicken, mushrooms, and ham.
  9. Sprinkle with grated Mozzarella and Monterey Jack Cheese, or any white cheese you prefer.
  10. Bake about 20 minutes covered, or until the cheese is mostly melted.
  11. Uncover and bake about 20 minutes more, or until the top is nicely browned.
  12. Serve Alice Springs Chicken Casserole hot.

Notes

If you can't find  Rao's Pasta Sauce (affiliate link), check labels to find the lowest-carb Alfredo sauce you can find. If you want to make your own low-carb sauce you could try Creamy Low-Carb Alfredo Sauce or Creamy Cauliflower Sauce for this recipe.

Recipe inspired by a version of Outback Steakhouse Alice Springs Chicken created by my brother-in-law Kelly.

Nutrition Information

Yield

8

Serving Size

1

Amount Per Serving Calories 493Total Fat 36gSaturated Fat 19gUnsaturated Fat 13gCholesterol 154mgSodium 970mgCarbohydrates 8gFiber 1gSugar 3gProtein 36g

Nutrition information is automatically calculated by the Recipe Plug-In I am using. I am not a nutritionist and cannot guarantee 100% accuracy, since many variables affect those calculations.

Did you make this recipe?

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square image of Alice Springs Chicken Casserole shown in casserole dish.

Low-Carb Diet / Low-Glycemic Diet / South Beach Diet Suggestions:
This casserole inspirec by Alice Springs Chicken from Outback is a good choice for low-carb and Keto diet plans. Check the carb count on the Alfredo Sauce if you make your own sauce or don’t use the sauce I recommend. Even with Rao’s Alfredo sauce, reduced-fat cheese, and lean ham, this is probably an occasional treat for the original South Beach Diet, due to the amount of fat.

Find More Recipes Like This One:
Use Casserole Recipes to find more recipes like this one. Use the Diet Type Index to find recipes suitable for a specific eating plan. You might also like to follow Kalyn’s Kitchen on Pinterest, on Facebook, on Instagramon TikTok, or on YouTube to see all the good recipes I’m sharing there.

Historical Notes for this Recipe:
I posted the version of Alice Springs Chicken inspired by my brother-in-laws recipe in 2006, probably without a photo! The recipe was updated with better photos in 2020 after I discovered Rao’s Alfredo Sauce. It was last updated with more information in 2026.

Pinterest image of Alice Springs Chicken Casserole

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