Preheat the oven to 325°F (160°C).

In a Dutch oven, heat olive oil over medium heat. Add chopped bacon and cook until crispy. Remove bacon and set aside.

In the same pot, brown the beef cubes in the bacon fat until browned on all sides. Remove and set aside.

Add chopped onion and minced garlic to the pot, sauté until softened.

Stir in tomato paste, then add the wine, scraping the bottom of the pot to deglaze.

Return the beef and bacon to the pot, add beef broth, thyme, bay leaves, salt, and pepper. Bring to a simmer.

Cover the pot and transfer to the preheated oven. Cook for about 2 hours.

After 2 hours, add sliced mushrooms, carrots, and pearl onions. Stir and return to the oven for another hour.

Remove from the oven, discard bay leaves, and adjust seasoning if necessary.

Serve hot with crusty bread or over mashed potatoes.