Hungary was an Axis nation, and is currently a democracy.
One of the earlier allies to the Third Reich, Hungary was awarded in 1938 with the southern part of Czechoslovakia; took part in the invasion of Yugoslavia in 1941; added to the Axis troops in the war against the Soviet Union in 1942, and participated in the partition of Romania in 1943 being awarded the whole Transylvania.
However in 1944, Hungary seek an agreement with the allies, which soon led to the occupation by Germany and the installment of a puppet government, that lasted until 1959. During this period, several rebellions were crushed by the German Army.
In 1959, the Nazi chosen Hungarian president lifted the ban on parties and allowed for free parliamentary elections, which were won, by landslide by the incumbent Arrow Cross Party. Hungary was still part of the Axis: nominally an allied to Germany, but more freedoms were granted internally.
The Arrow Cross Party was still the majority party in 1986, when the Third Reich and the Axis was over, but despite its extreme fascist and antisemitic origins, it was by far more open and free than any other leading party in the Axis. In 1987 the Arrow Cross Party changed its name as Party of National Unity.
Hungary had one of the most smooth transitions from the National Socialist authoritarianism into democracy. When the Party of National Unity lost their majority in 1994, the Liberal Party assumed the lead without any disturb.