This study focuses on upper mantle xenoliths from Sabar-hill (Bakony-Balaton Highland Volcanic Field), a newly discovered locality of mantle xenoliths, situated in the central Carpathian-Pannonian region (CPR). The investigated seven peridotite and one pyroxenite xenoliths record two episodes in the geochemical evolution of the local subcontinental lithospheric mantle. The moderately deformed Group I xenoliths reveal modal contents (≥9 vol% orthopyroxene), major element characteristics (depletion in Al2O3 and CaO in orthopyroxenes) and trace element features (e.g., enrichment in U, Pb and Sr in clinopyroxenes) typical in supra-subduction zones (i.e., mantle wedge) xenoliths. All these suggest that the studied xenoliths were formed by silica-rich fluid/melt - peridotitic wall rock interactions. The tectonic background to the formation of Group I xenoliths is likely linked to the subduction of an oceanic slab during the Mesozoic-Paleogene. This may have happened far from the current position of Sabar-hill, to where the lithosphere, including the metasomatized mantle volume, was transferred via plate extrusion. The less deformed, dominantly protogranular and porphyroclastic Group II xenoliths are depleted in light rare earth elements (LREE). In contrast, they are enriched in clinopyroxene (≥11 vol%), incompatible major elements (e.g., Al and Na) and heavy rare earth elements (HREE), by a minimum of four times compared to primitive mantle. All these suggest that Group II xenoliths represent a geochemically fertile mantle partition and the degree of partial melting affected this mantle section was limited (≤7% based on trace elements). Group II xenoliths have higher equilibrium temperatures (1088–1168 °C) compared to Group I xenoliths (1018–1089 °C). The lack of petrographic and geochemical evidence pointing to metasomatism-related annealing in Group II xenoliths suggests that they are derived from a greater depth. It follows that Group II xenoliths could represent prior asthenosphere volumes which recently accreted to the lithosphere. The lithospherization of the upper part of the asthenosphere may have initiated after the tectonic inversion of the region, when compressional tectonic regime beneath the CPR gradually overtook the former extensional one in the last ∼8 Ma. The high bulk structural hydroxyl content in both Group I (22–1699 ppm) and II (55–320 ppm) xenoliths is likely linked to the subduction events that took place in the CPR from the Mesozoic onwards. These events transported significant amounts of fluid (H2O) back to the upper mantle, affecting both the mantle wedge and the asthenosphere.