Yes, you can eat an onion even if it's green! The green parts are perfectly safe to eat and can be used just like scallions or green onions.
Understanding Green Onions
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All parts of an onion are edible: As stated in multiple sources, all parts of an onion plant are safe for human consumption. Source: Are Sprouted Onions Safe To Eat? This includes the green shoots that sprout from the center of the bulb.
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Green shoots vs. Green Onions: The green sprout from a stored onion is essentially the same as a green onion, only it grows from a bulb instead of being cultivated as a separate plant.
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Taste and Texture: While the green parts might have a slightly different flavor than the white or yellow parts of the onion (potentially slightly more bitter as mentioned on Quora), they are still perfectly palatable. Source: When a white onion starts to turn green, not moldy, is it still ok to eat...?
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Preparation: Simply remove the green sprout, and any tough outer layers or root ends which might be overly strong-tasting. Source: I have been told that leaving any of the green bits of a white onion in... Then use the remaining onion as you normally would.
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Using the green parts: The green parts can be chopped and added to salads, stir-fries, or other dishes. They offer a mild onion flavor and a nice crunch. Source: Can you eat the inner part of an onion if the outer layers turned to mush
Handling Spoiled Onions
It's important to distinguish between green sprouts and spoilage. If the onion shows signs of mold, rot, or slimy texture, discard it, regardless of the presence of green shoots.