Pat the beef dry using paper towels. Season with salt and pepper. This step helps the meat brown better. Dry beef creates a rich flavor when cooked in hot oil.

Heat oil in a large pot. Add beef pieces and cook until brown on all sides. Do not overcrowd the pan. Brown in batches if needed for best results.

Remove beef and set aside. In the same pot, cook onions and carrots. Stir until soft and slightly golden. Add garlic and cook for one more minute.

Sprinkle flour over the vegetables. Stir well for one minute. This helps thicken the sauce later. Make sure it blends smoothly without lumps.

Slowly add red wine and beef stock. Stir well to combine everything. Scrape the bottom to lift all the rich flavors stuck to the pot.

Return the beef to the pot. Add tomato paste, thyme, and bay leaf. Mix gently so all ingredients combine well. The sauce should cover the beef.

Cover the pot and let it cook on low heat for about 2 hours. Stir occasionally. The beef becomes very tender and the sauce thickens slowly.

Add mushrooms in the last 20 minutes of cooking. This keeps their texture soft but not mushy. They absorb the rich sauce beautifully.

Check seasoning before serving. Remove bay leaf. Serve hot with your favorite sides. The dish tastes even better the next day.