In October 1944, Hitler sent one of his favorite commando leaders, Otto Skorzeny, to Hungary when he received word that the country's Regent, Miklós Horthy was secretly negotiating his country's surrender to the looming Red Army. This surrender would have cut off a million German troops fighting in the Balkan peninsula. Otto Skorzeny, in another daring "snatch" codenamed Operation Panzerfaust, kidnapped Miklós Horthy's son Nicolas and forced his father to abdicate as Regent. A pro-German government was installed in Hungary which fought along side Germany until April 1945 when German troops were driven out of Hungary by the Red Army.

A total of 35 king tigers were used to augment the German troops in Operation Panzerfaust. They helped SS troops and elite paratroopers storm mountain fortress in which Miklós was holes up along with those loyal to him, including the cabinet of the Hungarian government. The defenders holed up for 30 minutes before they were ordered to surrender. The Horthy government had signed an armistice with the Soviets during the german invasion. In order to hold Hungary in the war, the Horthy government was destroyed and was replaced by the Hitler-faithful Frenec Szalasi.