After the revolution, the emperor revoked Hungary's constitution and assumed absolute control. Franz Joseph divided the country into four distinct territories: Hungary, Transylvania, Croatia-Slavonia, and Vojvodina. German and Bohemian administrators managed the government, and German became the language of administration and higher education. The non-Magyar minorities of Hungary received little for their support of Austria during the turmoil. A Croat reportedly told a Hungarian: "We received as a reward what the Magyars got as a punishment."

Hungarian public opinion split over the country's relations with Austria. Some Hungarians held out hope for full separation from Austria; others wanted an accommodation with the Habsburgs, provided that they respected Hungary's constitution and laws. Ferencz Deak became the main advocate for accommodation. Deak upheld the legality of the April Laws and argued that their amendment required the Hungarian Diet's consent. He also held that the dethronement of the Habsburgs was invalid. As long as Austria ruled absolutely, Deak argued, Hungarians should do no more than passively resist illegal demands.

The first crack in Franz Joseph's neo-absolutist rule developed in 1859, when the forces of Sardinia and France defeated Austria at Solferno. The defeat convinced Franz Joseph that national and social opposition to his government was too strong to be managed by decree from Vienna. Gradually he recognized the necessity of concessions toward Hungary, and Austria and Hungary thus moved toward a compromise. In 1866 the Prussians defeated the Austrians, further underscoring the weakness of the Habsburg Empire. Negotiations between the emperor and the Hungarian leaders were intensified and finally resulted in the Compromise of 1867, which created the Dual Monarchy of Austra-Hungary, also known as the Austro-Hungarian Empire.

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Source: U.S. Library of Congress