Onion powder is just onions that have been ground and dehydrated. Since onions are Paleo, there’s no reason not to include onion powder as part of a healthy diet.
How To Use It
Onion powder is often used to season food in the same way that spices are used. It’s basically concentrated onion, so a little goes a long way.
The Health Benefits
Onion powder also contains a lot of the same nutrients and health benefits as onions, such as antioxidants, improved glucose tolerance, and possible anti-cancer effects.
Mark Sisson has a whole post filled with reasons to eat onions (and other sulfur-rich vegetables).