England fans jeered the Hungary national anthem and chanted: "You racist b*****ds, you know what you are."
It is the latest in a long line of rows between the two footballing nations and happened as the players lined up before kick-off at Molineux.
A sizeable section of England fans sang and it immediately caused outrage on social media as booing, jeering or singing over the rival national anthem has become an unsavoury part of England games.
A small section of England fans then sang "No surrender" during the English national anthem, referring to an old IRA chant.
England players were booed in Budapest ten days ago after taking the knee in the Puskas Arena which further inflamed rivalry between the countries.
That game was played behind closed doors but had over 25,000 kids in the stadium and them booing the anti-racist gesture brought widespread criticism from England boss Gareth Southgate and his players
England were forced to play behind closed doors at Molineux themselves last Saturday after trouble at the Euros final last Saturday.
But Wolves ' home ground was a sell out on Tuesday night for the fourth and final Nations League game of this camp before the summer break.
The Hungary players looked fired up by the chants and boos while the away section sang loudly after their national anthem had played in defiance.