Heat olive oil in a large skillet over medium-high heat. Add ground beef, onion, mushrooms, and garlic. Season with bay leaves, oregano, basil, Italian seasoning, salt, and pepper. Add tomato paste, tomato sauce, and diced tomatoes.
Add pepperoni. Mix well.
Bring to a boil, reduce heat, cover and simmer for 1 ½ hour. Use spaghetti sauce on top with cooked noodles.