Mushrooms peak in fall–winter, but this soup works year-round: weeknight dinner, lunch thermos, first course for entertaining, or a cozy holiday starter (Thanksgiving, Christmas Eve) like my butternut squash orzo soup or sausage potato soup. It’s the best mushroom soup you’ll ever taste, and here’s why:

Hungarian Mushroom Soup in a bowl. 
Paprika + Mushrooms: I gently toast Hungarian sweet paprika with the buttered mushrooms and flour so it dissolves into the fat, creating deeper color and a warm paprika flavor in every spoonful.
Creamy but not heavy: I use milk + sour cream instead of all cream for a silky, lighter body that still feels indulgent—perfect as a main or a side dish.
Fresh herbs: Dill (classic Hungarian), parsley, and thyme go in off heat so they stay bright in color of full of flavor—your kitchen smells like a tiny bistro.
2 bowls of Hungarian Mushroom Soup. 
Why is it called “Hungarian Mushroom Soup”?
The name comes from classic Hungarian flavors and techniques: sweet Hungarian paprika cooked in fat to release flavor, lots of mushrooms and onions, and a creamy sour-cream finish that adds gentle tang. You’ll often see dill (and sometimes caraway) plus a bright splash of lemon or vinegar—all hallmarks of Hungarian-style comfort food. There isn’t one “official” recipe; it’s a family-by-family dish known as gombaleves in Hungary. My soup version sticks to those authentic cues—paprika, sour cream, fresh herbs—while keeping it weeknight-easy and restaurant-quality.

Hungarian Mushroom Soup in a bowl. 
Best Paprika To Use
Sweet Hungarian paprika (édesnemes) is the best choice. It provides mild heat, deep brick-red color, and clean pepper sweetness to the mushroom soup—the classic Hungarian profile this comfort food needs. Use the full 1 tablespoon as written.
Hot Hungarian paprika is another option. Add ¼–½ teaspoon alongside the sweet; it brings warmth without changing the flavor profile.
Spanish sweet smoked paprika (pimentón dulce) is not a traditional choice, but can be a tasty variation. It's great if you like a smokier flavor.
You'll Need These Ingredients:
The complete list of ingredients and the amounts are in the recipe card below.

This photo shows all the ingredients (labeled) for Hungarian Mushroom Soup. 
How to Make Hungarian Mushroom Soup
Note: This is a recipe overview with step-by-step photos. For a complete recipe with quantities of the ingredients, scroll down to the recipe card.

Melt butter in a large pot. Sauté onion 3–4 min until translucent.
Add mushrooms; cook 7–8 min until they release liquid and turn golden.
Cooking chopped onion in butter in a large pot, then adding sliced mushrooms. 
Stir in flour and Hungarian paprika; cook 1–2 min.
Gradually whisk in broth, then add milk and Tamari; simmer gently 10 min, stirring.
Adding flour and Hungarian paprika to the mushrooms, then adding broth to the soup pot. 
Off heat, stir in sour cream, lemon juice, parsley, dill, and thyme; season with salt, pepper, and chili.
Rest 2 min, garnish with herbs, and serve with crusty bread or a light salad.
Adding sour cream to the soup pot, then adding fresh herbs. 
Serving Ideas
Salads: Hungarian Mushroom Soup is hearty enough to be a meal on its own, but I love pairing it with a simple green salad to add freshness and stretch it over multiple days. A light arugula salad or a spinach salad works perfectly—I especially love it with my tomato cucumber lettuce salad, sweet-savory apple spinach salad, or sweet potato kale salad.
Bread: And of course, no soup is complete without bread! Serve it with a crusty rustic loaf, garlic bread, or even homemade bread from a bread machine for the ultimate cozy meal. I also love serving any soup with my savory bacon and cheese scones or my fool-proof garlic butter dinner rolls.
Fun additions: You can also ladle Hungarian mushroom soup over buttered egg noodles, rice, or barley for a heartier main. Or serve it as a bread bowl with hollow small sourdough bread rounds for a fun, restaurant presentation.