Between 1881 and 1914, Hungarian governments established at least 36 agricultural colonies in today’s territory of Romania (nine new villages and 25 neighborhoods attached to existing ones). After 1894, a separate government fund was created for land purchases and the venture was entrusted to a Department of Colonization within the Ministry of Agriculture. This article gives an archival-based account of the political, financial, agricultural, and logistical aspects of the settlement program and compares it with its better-researched Prussian model. Investigating it as a series of interactions between settlers, the dedicated government agency, local potentates, and the surrounding population, it identifies structural impediments to the endeavor. Although there was a broad unity across political parties behind the idea of conquering new territories for the ethnic nation, the settlement program rested on a fragile consensus within the elite. Its expansion after 1900 was mainly due to Minister Ignác Darányi, whereas the steps of other high officials give nuances to Hungarian nationalities policies. When Prime Minister István Tisza dropped the program on the eve of the First World War, it was already in a state of hibernation because the governing party had realized that the settlers posed a political liability for them.