The absence of strategic voting in new democracies represents a potential threat to democratic consolidation because it could inhibit the development of a stable party system. Yet can we expect that citizens in new democracies have developed the skills associated with strategic voting in democratic elections? Based on evidence from Hungary, a post-communist democracy, this article suggests that citizens in new democracies respond to strategic voting situations in a fashion consistent with conventional theories of strategic voting. Analysis of Hungarian voting statistics over the past three national elections indicates that voters, consistent with strategic voting theories, vigorously penalized smaller parties thereby contributing to the rapid decline in the number of effective parties competing in Hungarian elections. We argue that strategic voting occurs in two stages: (1) recognition of a ‘wasted-vote’ situation and (2) strategic response to that situation.