With tender mushrooms simmered in a flavorful base, this recipe delivers a hearty gravy that’s just as perfect for weeknight dinners as it is for holiday feasts.
Whether you’re pouring it over German Schnitzel, Jägerschnitzel, biscuits, or creamy mashed potatoes, this homemade gravy takes any dish to the next level.

Mushrooms In Gravy – What Kind To Use
For Mushroom Sauce, you’ll want mushrooms that bring rich, earthy flavor and hold up well during cooking.
- Cremini Mushrooms (Baby Bella)
- White Button Mushrooms
- Portobello Mushrooms
- Oyster Mushrooms
- Shiitake Mushrooms
- Wild Mushroom Mix
Basically the same options as when making red wine mushrooms, roasted mushrooms, or mushroom pasta.
How To Make Mushroom Gravy
Most of the cooking time is hands-off while the gravy simmers.
To make, all you do is brown the mushrooms, onions, and garlic in butter in a skillet over medium heat. Then, you’ll make a quick roux and add the remaining mushroom gravy ingredients and simmer until the mixture has thickened.


What To Serve With Mushroom Gravy
Mushroom gravy is especially good with schnitzel, steak and beef recipes, roast chicken, pork and just about any kind of mashed potatoes. A few of my favorites include:
It’s also an easy way to dress up biscuits, egg noodles or a simple plate of roasted vegetables.
If you’re planning a German dinner, this gravy is especially good with schnitzel and potatoes. For another German main dish, try my Bratwurst in Beer and Onions, made with browned bratwurst and slow-cooked onions.
Putting together the rest of the meal? Browse all of my German recipes for more mains and sides.
A Dunkel or Märzen is especially good when this gravy is served with Jägerschnitzel. My German Beer and Food Pairings guide covers those pairings along with sausages, roast meats and German Christmas dishes.

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Tips From Darcey’s Kitchen
- Try and use the dry brushing method when cleaning mushrooms to avoid making them waterlogged.
- Use unsalted broth and butter to control the total sodium content. I recommend tasting the gravy after reducing and adding salt and pepper as needed.
- Swap the thyme for rosemary, sage or another herb you like.
- I’ve had great success making this mushroom sauce a day or two in advance, which is extremely helpful for holidays such as Thanksgiving Dinner. Gently reheat it over medium-low heat in a skillet until warm throughout.

More Gravy Recipes
Here are a few more highly-rated gravy recipes to check out: Prime Rib Gravy, Turkey Gravy, and Chicken Gravy.
Planning a trip to Munich? My Oktoberfest Food Guide covers everything I’d make room for at the festival.

Mushroom Gravy
Ingredients
- 1 tbsp olive oil
- 2 tbsp butter or bacon grease
- 16 oz fresh mushrooms, cleaned and sliced (*Note 1)
- ½ cup finely diced yellow onion
- 1 large garlic clove, minced
- 2 tbsp butter
- ¼ cup all-purpose flour
- 2 cups beef broth
- 1 tsp Worcestershire
- ½ tsp dried thyme
- ¼ tsp kosher salt
- ¼ tsp Black Pepper
Instructions
- Add the oil to a large skillet and pre-heat over medium-high heat. Once pre-heated add the butter. Once melted stir in the mushrooms and sauté for 8-10 minutes until the residual water from the mushrooms evaporates.
- Sprinkle the mushrooms with salt and pepper and push to one side of the skillet. On the other side of the pan, add the onions and sauté for 3-4 minutes until soft. Add the garlic and stir until fragrant (approximately. 30-60 seconds).
- Mix together the mushrooms and onions and push to one side of the skillet. Add the butter to the other side of the pan and let melt. Whisk in the flour and let it cook for 3-4 minutes, whisking constantly.
- Slowly pour in the broth, Worcestershire, thyme, salt, and pepper while whisking, to ensure there are no lumps. Turn the heat up to medium-high until it starts to simmer.
- Once simmering, turn the heat down to low and simmer for 8-10 minutes until the gravy is thickened. Stir occasionally to avoid burning.
- Taste and add extra salt and pepper if needed. Remove from the heat and it will continue to thicken as it cools.



