The Mudi was discovered as a local Hungarian herding dog type with strong existing breed characteristics and was not created by human dreams of an ideal herding dog, but by need and performance selection. Its origin reaches well back into the 15th to 18th centuries, but the exact time is hard to pinpoint because of the confusion in the nomenclature of the different herding dog breeds of that time and place.
The official Latin name for the breed is Canis ovilis Fényesi, and is named for the breed's discoverer, Dr. Dezsõ Fényes. It was in 1936 that Dr. Fényes's discovered breed, in that time known as the "Driver Dog", was recognized as a breed in Hungary, though common knowledge of the breed appears much earlier on this timeline of the Mudi's existence and discovery than the 1920's.
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Central Indiana Kennel Club