Preheat your oven to 325°.
Heat the olive oil in a large Dutch oven or a heavy based pot that is oven safe. Add the bacon and cook until crispy. Transfer the bacon to a paper towel lined plate and set aside.
Add the beef in batches and brown well on all sides. Remove to plate.
Add the chopped onion, carrot, pearl onions to the pot over medium heat. Season with salt and pepper. Stir in the garlic. Cook for about 3 to 5 minutes until the onions are tender and translucent.
Stir in the mushrooms, then sprinkle with the flour. Stir and let cook for another 2 minutes. Add the bacon and beef back to the pot.
Add the tomato paste, bay leaf, and thyme, stirring to combine. Pour in the red wine and beef broth. Bring to a simmer.
Cover the pot with a lid, place in the oven and cook for 2 1/2 hours stirring every hour.
If stew starts to look too dry, add in small amounts of additional beef broth to make sure braising liquid remains in the pot.
Serve over cooked, wide noodles or creamy mashed potatoes.