During the last decades, flood events in Hungary and other European countries have become an unprecedented challenge to geotechnical engineering due to the increase in frequency and severity. Construction of the flood protection system has been started in the middle of the 19th century. Their construction materials and methods do not meet current standards and require constant inspection and maintenance. The three most significant historic floods (i.e., characterized by the largest yield) along the main Hungarian Rivers have occurred in the last 20 years. During these events, soil instability and embankment failure occurred along the levees at several locations. The paper focuses on the effect of water levels on levee stability at a selected site along the Tisza River that failed during the 2006 flood events. To model the failure induced by extremely high water level, transient seepage analysis was carried out. The input parameters were determined based on the results of site investigations and laboratory tests. The study showed that with increasing water levels and time of flood, the stability of the levees decreased.