One pot and budget-friendly steak and mushrooms has a rich gravy that delivers steakhouse vibes right at home.

Holly’s Recipe Highlights
- Flavor: Savory, melt-in-your-mouth steak is paired with earthy mushrooms and a rich and buttery, thyme infused gravy that gives off comfort food vibes.
- Skill Level: This recipe is simple and reliable. You can turn an inexpensive cut of steak into something tender and juicy every time.
- Recommended Tools: A Dutch oven with a tight-fitting lid works best and easily goes from stovetop to oven.
- Serving Suggestions: This steak is perfect served over mashed cauliflower, cauliflower rice, or roasted veggies.

Best Ingredients
- Steak: Round steak may be a tough cut, but if you pound it with a meat tenderizer and slow braise, you can transform it into a tender and flavorful main dish.
- Mushrooms: Pre-sliced mushrooms save time. Cremini mushrooms add deeper flavor, while white button mushrooms keep things mild.
- Sauce: Add a splash of extra broth if the liquid reduces too much.
- Seasoning: Dried thyme leaves work well instead of fresh. It can also be swapped with Italian seasoning or rosemary in a pinch. Worcestershire sauce will add depth and extra flavor to the sauce. It can be swapped with coconut aminos and a splash of vinegar.
- Thickener: Cornstarch thickens the gravy nicely. For a lower-carb option, use xanthan gum (start with a tiny amount) or simmer longer to reduce the sauce naturally.
- Variations: For a creamy mushroom gravy, add a splash of heavy cream at the end. Add extra veggies such as baby spinach after baking, or replace the mushrooms with sliced zucchini in the last 30-40 minutes.
How to Cook Steak and Mushrooms
- Brown steaks and saute vegetables.
- Add ingredients to the pan, cover, and bake (full recipe below).
- Remove steaks and veggies, thicken the sauce with a cornstarch mixture.
- Add everything back to the pan and serve!

Holly’s Tender Steak Tips
- Pound the steaks to an even thickness so they braise evenly.
- Do not overcrowd the pan as it can cause the meat to steam. Instead, brown the steak in batches.
- Keep it covered tightly in the oven so the steak is surrounded by moist heat.
- Check for tenderness before the cooking time is finished. It should cut easily with a fork.
- For a smooth gravy, whisk the cornstarch slurry right before pouring.
Leftovers That Last
Cool and refrigerate steak with gravy in an airtight container for up to 4 days. Freeze the steak in the gravy in freezer bags for 2 months. To reheat, warm in a covered skillet on low with a splash of broth to loosen the gravy, or microwave at 50 to 70% power, stirring the gravy halfway through.
Leftover steak can be added to bowls, stuffing into low-carb wraps, or serving over roasted cauliflower.
More Mushrooms Loving Dinners
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Steak and Mushrooms
Equipment
Ingredients
- 2 pounds round steak
- 2 tablespoons olive oil
- 8 ounces mushrooms sliced
- 1 onion diced
- 1 tablespoon butter
- 2¼ cups beef broth low sodium
- ½ teaspoon thyme leaves
- 1 tablespoon Worcestershire sauce
- 2 tablespoons cornstarch
- Salt and pepper to taste
Instructions
- Preheat oven to 300°F.
- Using a meat mallet, pound meat to ½-inch thickness then season with salt & pepper.
- Heat 1 tablespoon olive oil over medium heat in a dutch oven. Brown steaks on each side. Remove from pan and set aside.
- Add mushrooms, onions, and 1 tablespoon butter. Cook until tender, about 5 minutes.
- Add steaks back to the pan. Combine remaining ingredients, except for cornstarch, and pour over steaks. Cover and bake for 2 ½ to 3 hours or until steaks are fork-tender.
- Remove steaks from the liquid and set aside. Whisk together cornstarch and 2 tablespoons water until smooth. Bring cooking liquid to a boil and add cornstarch mixture slowly while whisking continuously, until desired thickness.
Notes
- Keep leftovers in an airtight container in the refrigerator for 4 days.
- It will also keep in the freezer for 2 months.
Nutrition Information
Nutrition information provided is an estimate and will vary based on cooking methods and brands of ingredients used.
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