We propose a unified, surface-based functionalist analysis of the phonology of Hungarian v, which is shown to fare better than past generative formalist/ representational models. The model introduced can account for the two-fold patterning of v with respect to voicing assimilation without evoking exceptional means. Furthermore, it can also explain certain asymmetries as well as graduality displayed by v's phonotactic distribution, namely, that some clusters are more frequent in the lexicon, whereas others are marginal. The analysis is grounded in the aerodynamics of v's articulation (which involves inherently contradictory targets) as well as in the relative perceptibility of its contrast in various contexts. It is shown with the help of quantitative experiments that v's phonological patterning is directly derivable from these phonetic factors.