What you need to know:
Hungary was the most reform-minded Communist state in Eastern Europe and so its revolution was the least dramatic. Many intellectuals remained despite the quashing of the 1956 revolt and the repression that followed. In the 1960s, Hungary experimented with free-market reforms, known as "goulash Communism". In the 1980s a more relaxed political atmosphere permitted the growth of a limited autonomous sector, the re-emergence of reformers in the party, and the elaboration of issues that mobilised urban society in favour of change.
In June 1985 the first elections multi-party elections were held. There were some prominent defeats and 43 independent candidates were elected. It was not yet democracy but it was a big step forward.