In an unusually strongly worded statement from world soccer's governing body as it battles a slew of racism issues, FIFA described the behavior of Hungary fans in the August friendly in Budapest as "abhorrent."
Watch Hungary fan's anti-Israel behavior
"The members of the FIFA Disciplinary Committee were unanimous in condemning an abhorrent episode of racism, anti-Semitism, and of political provocative and aggressive nature perpetrated by supporters of the Hungarian national team," FIFA said in a statement.
The case followed a report by the supporters' group FARE (Football Against Racism Europe) and Jewish groups into the incidents at the 1-1 draw.
Hungary was also ordered to pay a fine of 40,000 Swiss francs ($43,200). Their next home World Cup qualifier is against Romania in March.
Bulgaria, who must pay a 35,000 Swiss franc fine, was sanctioned for the behavior of its supporters in the World Cup qualifier against Denmark in October.
Denmark complained that Bulgaria fans made monkey chants when substitute Patrick Mtiliga came on as a second-half substitute during the 1-1 draw at the Vasil Levski national stadium in Sofia.
Bulgaria's next home game is against Malta on March 22.