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The current study investigates the demographic processes and challenges of the Hungarian developmentally peripheral settlements. Demographic challenges can be regarded as important consequences of the social and economic disadvantages in spatial terms. However, the interrelating negative demographic tendencies cause even more backward situation blocking or hindering the development. The objective of the current analysis is to discover the demographic characteristics of the peripheral settlements, to detect the spatial disparities and to point out the correlation between backwardness and the investigated demographic phenomena with the help of the census databases 1980-2011 and local datasets on Roma population. Using methods of multivariate statistical analysis, seven indicators were selected in order to achieve the goals of the paper. Backward areas are primarily characterized by population decrease with significant disparities, but there were growing communities among them as well. Some small villages in Northern and Southwestern Hungary will foreseeably face complete depopulation within few years. Primarily small sized villages faced intense decrease in rate of natural change, but dynamic population growth was also detected. Migration loss tends to correlate with the extent of peripherality, as increasing values of migration balance accompany decreasing ratio of peripheral settlements in the area. The ratio of elderly population shows an expressively two-faced character, with the extremely aging and very juvenile settlements. The ratios of Roma population reflect the scale of peripherality. Extended ethnic change could be predicted in Northeastern and Southwestern Hungary and near the Middle Tisza valley. Presented demographic processes will make the backwardness of most of the peripheral settlements stable.