Vladislaus laid claim to Hungary after Matthias's death. The Diet of Hungary elected him king after his supporters defeated John Corvinus. The other two claimants, Maximilian of Habsburg and Vladislaus's brother, John Albert, invaded Hungary, but they could not assert their claim and made peace with Vladislaus in 1491. He settled in Buda, enabling the Estates of Bohemia, Moravia, Silesia and both Lusatias to take full charge of state administration. Like previously in Bohemia, also in Hungary Vladislaus always approved the decisions of the Royal Council, hence his Hungarian nickname "Dobzse László" (from Czech král Dobře, in Latin rex Bene – "King Very Well"). Due to the concessions he had made before his election, the royal treasury could not finance a standing army and Matthias Corvinus's Black Army was dissolved after a rebellion, although the Ottomans made regular raids against the southern border and after 1493 even annexed territories in Croatia.

During his reign, the Hungarian royal power declined in favour of the Hungarian magnates, who used their power to curtail the peasants’ freedom. His reign in Hungary was largely stable, although Hungary was under consistent border pressure from the Ottoman Empire and went through the revolt of György Dózsa. On March 11, 1500, the Bohemian Diet adopted a new land constitution that limited royal power, and Vladislav signed it in 1502. Additionally, he oversaw the construction (1493–1502) of the enormous Vladislav Hall atop the palace at the Prague Castle.