In a skillet, cook bacon until crisp. Reserve to a paper-towel lined plate to drain and cool. Do not wipe out pan.

Add onion to bacon fat and stir to coat. Reduce heat to medium-low and cook, stirring occasionally, until onions are very soft. Let cool slightly.

In a medium bowl, stir together sour cream and softened cream cheese.

Chop bacon and onions into small pieces, then add bacon, sauteed onion, and green onion into sour cream mixture. Stir until well combined.

Garnish with additional green onion and serve immediately, or chill until ready to eat.