The last governing period of the Hungarian Socialist Party between 2006 and 2010 ended in a steep decline. Recently, the political environment in Hungary has displayed a significant illiberal shift, which poses an urgent challenge for social democracy and it�s response to it. This study describes the brief history of the Hungarian Socialist Party since 1989 and its position in the Hungarian political landscape. It focuses on the party�s value system, organisational structure and cooperation with other domestic and international actors. In conclusion the authors of the study identify the main challenges that are facing social democracy in Hungary and give some recommendations to strengthen its position.