There is a great debate in the European Union on the present role of nation states, and on the role of state sovereignty on their importance in the future. Some say that the concept of nation states is out-of-date and incapable of facing the challenges of the modern world, while others believe that the nation state is a means of dealing with modern challenges. The key questions of the disagreement are the place and role of nation states in the European Union and the interdependent sovereignty of modern states. This study joins the discussion by reviewing the history of the Hungarian state sovereignty and its ethnical background. The second aim of this paper is to provide a historical contribution to the current discussion with outlining some details of the historical trends and external views on Hungarian ethnicity and state sovereignty.