I love these tender steak bites simmered in a savory mushroom gravy. This entrée is quick to make and full of rich, comforting flavor. Serve it over mashed potatoes or rice for a satisfying family meal.

Update: This recipe was originally published in 2020 and has been republished with new photos.
Cooking steak doesn’t have to be intimidating. These steak bites sear quickly and stay juicy, while the mushroom gravy brings depth—beef stock, a splash of balsamic for brightness and a touch of sweetness, garlic, thyme, rosemary, and simple seasonings. It’s an easy, flavorful weeknight dinner that feels special. Pair it with a glass of red if you like, and prepare to enjoy.

Ingredients for Skillet Steak Bites in Mushroom Gravy
- Olive oil or avocado oil (or butter/ghee): for searing the steak and sautéing the mushrooms.
- Sirloin steak (about 2 pounds), cut into 1-inch pieces: economical and tender. You can also use New York strip or ribeye; avoid flank or skirt for this recipe.
- Sliced mushrooms (about 8 ounces): baby portobello, cremini, or white button mushrooms work well.
- Minced garlic (1 tablespoon): fresh or jarred.
- Beef stock or broth (1 cup): adds rich savory flavor to the gravy.
- Balsamic vinegar (2 tablespoons): brightens the sauce with tangy sweetness.
- Arrowroot flour or cornstarch (1 tablespoon) plus 1 tablespoon cold water: to make a slurry for thickening.
- Seasonings: salt, black pepper, 1/2 teaspoon dried thyme, 1/2 teaspoon dried rosemary, 1/2 teaspoon onion powder, 1/2 teaspoon garlic powder.

How to Make Skillet Steak Bites in Mushroom Gravy
Heat 2 tablespoons oil in a large skillet over medium-high heat. Add the steak pieces in a single layer, season with salt and pepper, and sear until nicely browned—about 2 to 3 minutes per side. Work in batches if needed so the pan doesn’t overcrowd. Remove the seared steak to a plate.
Wipe or rinse mushrooms to remove any dirt and pat dry. Reduce heat to medium and add the remaining oil (or butter/ghee). Add the sliced mushrooms and sauté, stirring occasionally, until they are tender and golden, about 4 to 5 minutes. Add the minced garlic and cook about 1 minute until fragrant.
Pour in the beef stock and balsamic vinegar, then add thyme, rosemary, onion powder, and garlic powder. Stir to combine, taste, and adjust seasoning. Return the steak bites to the skillet, cover, and simmer for about 4 to 5 minutes or until the steak reaches your preferred doneness. If you prefer medium-rare, wait to add the steak until the gravy is almost finished so the meat only needs a minute to warm through.
In a small jar or cup, whisk the arrowroot or cornstarch with cold water to form a slurry. If using cornstarch, add the slurry to the skillet and simmer 1–2 minutes until the sauce thickens and the steak is cooked through. If using arrowroot, remove the skillet from heat after the steak finishes cooking, then stir in the slurry—the sauce will thicken immediately.
Serve the steak bites and mushroom gravy ladled over mashed potatoes, rice, or another starch that will soak up the sauce. Garnish with fresh thyme or rosemary if desired.

Storage and Reheating
Store leftovers in an airtight container in the refrigerator for up to 4 days. Reheat gently in a skillet over low to medium-low heat or in the microwave until warmed through.

Serving Suggestions
This mushroom gravy is irresistible—serve it over mashed potatoes, white or brown rice to soak up every drop. Add a green side like roasted or sautéed broccoli, or simple green beans for balance. Finish with fresh herbs for color and aroma.

More recipes like this:
Chicken in Mushroom Gravy
Salisbury Steak in Mushroom Gravy
Steak with Roasted Veggies
Instant Pot Beef Stew
Creamy Herb Mushroom Chicken

Skillet Steak Bites in Mushroom Gravy
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Ingredients
Steak Bites
- 2 tablespoons olive or avocado oil
- 2 pounds sirloin steak, cut into 1-inch pieces
- 1 teaspoon salt
- ¾ teaspoon pepper
Mushroom Gravy
- 2 tablespoons oil or avocado oil, can use butter or ghee
- 8 ounces sliced mushrooms, I prefer sliced baby portabella mushrooms
- 1 tablespoon garlic, minced
- 1 cup beef stock
- 2 tablespoons balsamic vinegar
- ½ teaspoon dried thyme
- ½ teaspoons dried rosemary
- ½ teaspoon onion powder
- ½ teaspoon garlic powder
- 1 tablespoon arrowroot flour or cornstarch
- 1 tablespoon cold water
Instructions
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Heat 2 tablespoons oil in a large skillet over medium-high heat. Once oil is hot, add steak bites in a single layer and season with salt and pepper. Sear 2–3 minutes per side until browned. Remove to a plate.
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Clean mushrooms and pat dry.
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Reduce heat to medium and add remaining oil and mushrooms. Sauté until golden and tender, about 4–5 minutes.
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Add minced garlic and cook about 1 minute until fragrant.
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Stir in beef stock, balsamic vinegar, thyme, rosemary, onion powder, and garlic powder. Return steak to the skillet, cover, and simmer 4–5 minutes until warmed through and cooked to your liking. Adjust salt and pepper if needed.
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Make a slurry with the arrowroot or cornstarch and cold water. For cornstarch, add the slurry and simmer 1–2 minutes until sauce thickens. For arrowroot, remove from heat, stir in the slurry, and the sauce will thicken immediately.
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Ladle steak and mushroom gravy over mashed potatoes or rice and serve.
Notes
Nutrition
Nutrition information is automatically calculated, so should only be used as an approximation.
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