The modern bilateral relationship between Hungary and Ukraine formally began in the early 1990s, after the end of communism in Hungary in 1989 and Ukrainian independence from the Soviet Union in 1991. Since then, the relationship has been marred by controversy over the rights of the Hungarian minority in the western Ukrainian region of Zakarpattia, where 150,000 ethnic Hungarians reside. Hungary and Ukraine have embassies in Kyiv and Budapest, respectively, as well as consulates in regions with large minority populations.

Zakarpattia Oblast, also referred to as simply Zakarpattia or Transcarpathia in English, is an oblast in western Ukraine, mostly coterminous with the historical region of Carpathian Ruthenia. Its administrative centre is the city of Uzhhorod. Other major cities within the oblast include Mukachevo, Khust, Berehove, and Chop, the last of which is home to railroad transport infrastructure.