In a blender or food processor, combine the avocado, mayonnaise, sour cream (or Greek yogurt), and lime juice. Blend until smooth.
Add the minced garlic, chopped cilantro, and ranch dressing mix to the blender. Blend again until all ingredients are well combined and the mixture is smooth.
If the dressing is too thick, gradually add water or milk until you reach your desired consistency. The amount you need will depend on the ripeness and size of the avocado, as well as your personal preference.
Taste the dressing and adjust the seasoning with salt and pepper as needed.
Transfer the dressing to a container and refrigerate for at least an hour to allow the flavors to meld together.
Enjoy your homemade Avocado Lime Ranch dressing on salads, as a dip, or as a topping for tacos or grilled chicken.