This chapter portrays the specific historical features of liberal thought and liberalism in Hungary, to demonstrate historically what made the liberal political actors remain distant from the public, even when their main occupation was to propagate liberty and egalitarianism. It examines the liberal narrative regarding moral agency, economic development, rights and freedoms, and questions why the liberal narrative alienated the public from the very process of liberalization. Essentially, this is an investigation into the triangular relationship among liberalization, alienation, and elitism in Hungary, elaborating on the lines of thought and political activity of the noble-liberal tradition of the nineteenth century, liberal politics of the interwar years, the economic liberalization during NEM (New Economic Mechanism) of Kádár, and political liberalization sought by the dissidents under communism. Eventually, the main focus of this chapter becomes the troublesome dilemma of Hungarian liberalism, that is, why Hungarian liberals' freedom-seeking and -enhancing efforts have translated into freedom-curbing elitism.