Pat the lamb pieces dry and season generously with salt and pepper. Heat olive oil in a large Dutch oven over medium-high heat.
Brown the lamb in batches, about 4-5 minutes per side until nicely caramelized. Don't rush this step—it builds amazing flavor! Transfer browned lamb to a plate.
Reduce heat to medium and add the onions to the pot. Cook for 6-7 minutes until softened and starting to caramelize. Add garlic and cook for another minute.
Stir in the tomato paste and cook for 2 minutes. This deepens the flavor and adds richness to your stew.
Return the lamb to the pot along with any juices from the plate. Add the broth, Worcestershire sauce, thyme, and bay leaves. Bring to a boil, then reduce to a gentle simmer.
Cover and simmer for 1 hour, stirring occasionally. The lamb should be starting to get tender.
Add the potatoes, carrots, and parsnips. Cover and continue simmering for another 1 to 1½ hours, until the lamb is fork-tender and the vegetables are cooked through.
Remove the thyme sprigs and bay leaves. Taste and adjust seasoning if needed. Let the stew rest for 10 minutes before serving—this helps the flavors settle. Garnish with fresh parsley and serve with Irish soda bread. Refrigerate leftovers for up to 4 days, and enjoy watching this stew become even more incredible!