The Budugs speaking in the Budug language live in the village Budug. The ethnic group of the Budugs is little studied in the historical and ethnographic respect. Elements of the Budugs' culture, as well as their language, are very close to the Kriz's. As to legends, Budug was founded in epoch of the Caucasian Albania. It is located in a remote place so that inhabitants could be rescued from attacks of Sasanidian armies (from the year of 267 to 651 a part of territories of northern Azerbaijan has been grasped by armies of Iranian state of the Sasanids).

The Budugs live separately as the roads leading into the settlement, are practicable only in summer season. Since ancient times the Budugs have been residing in this place. Near the village, in location Gulkhana and on the mountain Ambara, there were saved old caves evidencing ancient settling.

The word "budug" in the ancient Turkish language stands for "angry", "violent". They consider inhabitants of neighbor settlements in view of their pronounced characteristic features gave this name to them. The budugs name themselves "budad".

For the first time the historic fact with regard to the Budugs is given in the treatise "Jame at-tavarikh" by Fazdullah Rashidaddin, the historian of the end of XIII and the beginning of XIV centuries. The author mentions that this dynasty comes from Tombin khan's fifth son Bath Kulkin. In days of Chingiz khan their head was Huriday. When Chingiz khan battled against Tajiut's dynasty, the Budugs and Chingiz khan were allies, and their armies were incorporated.

The first official document regarding the Budugs is a decree of 1607 published by governor of Sefevid state Shah Abbas I. Decrees of Kuba khans Hasanali-khan, Fatali-khan, Sheikh Ali-khan about Budug and the Budugs published in 18 to the early 19 centuries have a special value. And these decrees play a special role in studying of history of Budug and the Budugs. A.Bakihanov mentions Budug and the Budugs in his work "Gulustani-Iram". In XIX century Budug was the center of administrative division mahal.

Historically the Budugs divide on big and small families, on dynasties. On a rural cemetery each dynasty has his place.

Prior to the beginning of XX century population of Budug made 2500 - 3500 persons. At present there live 200-300 persons in this settlement. In connection with social and economic problems the most part of the population has left this place.