The 27-year-old finished in four minutes 26.36 seconds on Saturday to eclipse the previous mark of 4:28.43 set by China's Ye Shiwen at the London 2012 Games, reports Xinhua.
Maya Dirado of the United States was second in 4:31.15 and Spain's Mireia Belmonte third in 4:32.39.
It was Hosszu's first podium finish at the Games, despite having netted nine world championship medals -- five of them gold.
In Rio, Hosszu is making her fourth appearance at an Olympic Games.
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