Following World War II, an American diplomat, Arthur Schoenfeld, arrived in Hungary in January 1945 as a representative of the Allied Control Commission.

During the Cold War years the embassy existed but due to tense relations, no ambassadors, only temporary chargés d'affaires, were stationed in the other country.

[14] Embassies were upgraded to ambassadorial status, and both countries finally sent ambassadors to lead their missions: the USA sent Martin J. Hillenbrand in 1967, and Hungary sent János Nagy in 1968.

He collaborated with other diplomats from neutral countries such as the Swedish Raoul Wallenberg, the Apostolic Nuncio Angelo Rotta, and the Italian Giorgio Perlasca.

[17][16] The memorial acknowledges Lutz's courageous actions that saved tens of thousands of Hungarian citizens persecuted as Jews during World War II.

[16] On the eastern side of Liberty Square park, next to the Hungarian National Bank, stands a statue commemorating Brigadier General Harry Hill Bandholtz.

Bandholtz, an officer in the United States Army, played a significant role as part of the Inter-Allied Military Mission tasked with overseeing the withdrawal of Romanian troops from Hungary in 1919 following the Hungarian–Romanian War.[19]: p.

xxii and xxviii The inscription on the statue, a quote from Bandholtz, reads: "I simply carried out the instructions of my government, as I understood them, as an officer and a gentleman of the United States Army.

It portrays Bandholtz holding a riding crop behind his back, a compromise reached due to Romanian objections to the statue.

[21] The riding crop signifies an incident on October 5, 1919, where Bandholtz stopped Romanian soldiers from entering the Hungarian National Museum and taking artifacts and treasures from within it.

It was finally returned to its original location in Liberty Square in July 1989, ahead of a visit from U.S. President George H. W. Bush.