"The northern wing of the parliament and the surrounding area including the Museum of Ethnography have been evacuated after construction workers found a World War II bomb," a spokeswoman for the Hungarian army told state newswire MTI.
The device weighed 100 kilogrammes (220 pounds) and was Soviet-made, she said.
Army experts were now working to defuse the bomb, she added.
Cites and towns across Nazi-allied Hungary were bombed heavily during the final months of the war by US, British or Soviet forces, with Budapest carpet-bombed on 37 occasions.
In May, an unexploded Soviet-made World War II shell was discovered embedded in the roof of Budapest's city hall.
In the same month a 70-kilo (154-pound) German bomb from World War II was unearthed at a construction site near the Royal Palace in Budapest's touristy Castle district.
Last October, a 500-kilo (1,100-pound) US-made bomb was discovered in the river Danube close to a railway bridge in the north of the city.
All bombs were defused safely without causing damages or injuries.
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