The area around Ubud has been inhabited since ancient times, with evidence of settlements dating back to the 8th century. The region was originally inhabited by the Balinese people, who were predominantly farmers and artisans.

Ubud, like the rest of Bali, was heavily influenced by Hindu culture and religion, which arrived in Indonesia around the 1st century CE. Hinduism played a significant role in shaping the cultural and religious landscape of the region, with the construction of temples and shrines dedicated to Hindu deities.

In the 16th century, Ubud became a center of power for the ruling royal family of Gianyar. The royal family played a crucial role in promoting the arts, culture, and spirituality of the region, fostering the development of traditional Balinese dance, music, painting, and crafts.

During the 19th century, Bali came under Dutch colonial rule. While Ubud was not directly administered by the Dutch, the colonial presence had a significant impact on the island's economy and governance.

In the early 20th century, Ubud experienced an artistic renaissance, attracting Western artists and intellectuals who were drawn to the region's natural beauty and vibrant cultural scene. Artists such as Walter Spies and Rudolf Bonnet played a pivotal role in promoting Balinese art internationally and establishing Ubud as a center for artistic expression.

Following Indonesia's independence from Dutch rule in 1945, Ubud continued to thrive as a cultural and artistic hub. Tourism began to flourish in the latter half of the 20th century, with Ubud becoming a popular destination for travelers seeking to experience Bali's rich cultural heritage, spiritual traditions, and natural beauty.

Ubud is considered the cultural heart of Bali, known for its traditional Balinese arts, including dance, music, painting, and crafts. Visitors can explore art galleries, museums, and attend traditional performances.

The town is surrounded by lush rice paddies, dense forests, and scenic rivers. Travelers often engage in activities such as trekking, cycling, or rafting to explore the natural beauty of the area.

Ubud is home to several ancient Hindu temples and shrines, such as the Goa Gajah (Elephant Cave), Pura Tirta Empul (Holy Water Temple), and the Ubud Monkey Forest, where visitors can observe playful macaques and explore sacred temples.

Ubud is a popular destination for wellness and spiritual retreats, offering yoga classes, meditation sessions, and spa treatments amidst serene surroundings.

The town boasts a vibrant artisan community, with numerous boutiques, markets, and workshops selling handmade crafts, textiles, jewelry, and souvenirs.

Ubud offers a diverse culinary scene, with an array of restaurants, cafes, and warungs (local eateries) serving both traditional Balinese dishes and international cuisine.