Gather all ingredients.
Combine the ground beef, panko bread crumbs, onion, egg, 1 tablespoon ketchup, 1 ½ teaspoons Worcestershire sauce, mustard powder, salt, and pepper in a large bowl. Mix until just combined.
Shape mixture into 20 (1 ½-inch) meatballs.
Add olive oil to a large skillet and heat over medium-high heat. Cooking in batches, add half the meatballs to the skillet and brown on all sides, about 5 minutes. Meatballs will not be fully cooked. Remove the meatballs from the skillet; set aside.
Reduce heat to medium and add butter to the skillet. Once melted, add mushrooms and cook until golden brown. Add flour to the mushrooms and cook for 1 minute. Slowly whisk in beef stock, the remaining 2 teaspoons Worcestershire sauce, and 2 teaspoons ketchup. Bring mixture to a simmer, whisking constantly, until thickened, about 5 minutes.
Return meatballs to the skillet. Spoon gravy over meatballs. Cover and cook until heated through and meatballs are done (160 degrees F or 72 degrees C), about 5 minutes.
Top the meatballs with chopped parsley and serve with mashed potatoes.
