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On 19th June 2001, the Hungarian Parliament adopted an Act on “Hungarians living in neighboring countries” or the so-called “Status Law”. It came into force on 1st January 2002, giving special rights to Hungarian minority living in neighboring countries. This step was taken in order to exempt Hungarians living in Romania, Ukraine, Slovakia, Yugoslavia and Croatia from visa requirements for non-Schengen countries in the case of EU enlargement. The law raised controversy in the aforementioned neighboring countries and in EU itself, because it was adopted by the Hungarian Parliament without consultation with the EU Council, a matter made worse by the fact that some of the provisions laid down in this law are apparently in conflict with the prevailing European standards on minority protection. The present article concentrates on the peculiarities of migration processes in Hungary, whilst analyzing Hungarian migration policy (the so-called ethnic approach) and discussing the consequences of Status Law implementation. Hungary is becoming more and more Western in its migration and demographic pattern. Like other Western countries it is faced with a lack of labor force and is trying to find its own solution to this problem, even to the extent of acting against EU regulations and international legal norms. The migration policy of the country is determined by the national policy for maintenance of close relations with Hungarians in neighboring countries, where a significant number of Hungarians live. The implementation of this law will help Hungarians (in the Hungarian government’s opinion) to restrict emigration from one side, and will simultaneously moderate the process of assimilation of Hungarians into these neighboring countries as well. However, analysis of the migration history of Hungary over the last decade shows that this statement is very doubtful. In reality, the well-organized financial provisions, which are provided by the Status Law for almost all spheres of life for Hungarians living in neighboring countries, will lead to emigration of Hungarians to their motherland.