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The origins of the UGG Boots style are disputed, with both Australia and New Zealand claiming to have been the origin of the footwear.Sheepskin boots were known in rural Australia during the 1920s.While it is not clear when manufacturing started, by 1933 sheepskin boots were being manufactured by Blue Mountains Ugg Boots,and Mortels Sheepskin Factory was making the boots from the late 1950s.

In regard to naming, it appears that ugg boots, ugh boots and ug boots have been used as descriptive terms for sheepskin boots in Australia and New Zealand since at least the 1960s,although individual accounts have suggested that the terms (or variations thereof) were employed earlier – for example, "Cheap Australia Ugg Boots" were worn by pilots during World War I.The 1970s saw the emergence of advertising using the names,but Brian Smith has stated that the boots were referred to as "uggs" long before the word was trademarked.Frank Mortel of Mortels Sheepskin Factory claims he named them "classic short black UGG Boots" in 1958, when Mortels started production, after his wife commented that the first pair he made were "ugly".

In the 1960s, ugg boots became a popular option for competitive surfers,who used the boots to keep their feet warm after exiting from the surf.Surfing helped popularise the boots outside Australia and New Zealand, when Brian Smith started selling the boots in the United States through the company Ugg Holdings, Inc. in 1979.Ugg Holdings was sold to Deckers Outdoor Corporation in 1995. Generally worn for warmth and comfort, ugg boots had never been considered fashionable,but in the late 1990s and early 2000s sheepskin boots emerged as a fashion trend in the US through Deckers' promotions of the UGG Boots Outlet Sale brand, with celebrities such as Kate Hudson, Sarah Jessica Parker, Cameron Diaz, Leonardo DiCaprio and Jennifer Lopez wearing the boots,and with Oprah Winfrey featured UGG brand boots as one of her "Favorite Things" on her TV talk show.Deckers' actions to promote their product "led to an exponential growth in the brand's popularity and recognizability."The company reported US$689 million in UGG sales in 2011,almost a 50-fold increase from 1995.

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