The Pope was awarded the degree during a ceremony at the university.
Pázmány Péter Catholic University, founded in 1635, is one of Hungary's oldest Catholic education institutions.
Arabic professor at Budapest University Toshka Laslo, who delivered the university's speech, commended Pope Tawadros and the Coptic Orthodox Church for their sacrifices and role in Christian education and social development.
"We are proud to accept Pope Tawadros among the honorary professors at Pázmány Péter University," he added.
For his part, Pope Tawadros said he was honoured to receive the doctorate from the prestigious university. He also praised Egypt's civilization and history.
The ceremony was attended by Hungary’s Deputy Prime Minister Shamien Cholte and the Egyptian Ambassador to Hungary Mohammed El-Shennawy.
Pope Tawadros arrived in Budapest on Monday for a 4-day visit to participate in the national day celebrations as an honourary guest.