In multicellular organisms asexual reproduction by budding is shown by hydra. In fully grown Hydra, at specific part of its body there is development of bud.
This development is only during favourable period. The bud is an outgrowth developed due to repeated divisions of regenerative cells of body wall. It grows up gradually to form a small hydra. Parent hydra’s dermal layers and digestive cavity are in continuity with those of the budding hydra. It receives all the nutrition from parent hydra. When the budding hydra grows sufficiently, it detaches from parent hydra. Then it leads an independent life.