In the Arctic and China, sheepskin boots have long been popular with people in rural occupations, such as sheep shearers, who have ready access to the raw materials. They are traditionally used for skiin. Their popularity increased as a result of World War I and World War II, where they were popular with aviators, because of their need to keep warm in non-pressurized planes at high altitudes.

An exhibit of a WWI aviator’s outfit in the Canadian War Museum cites the term “fug” boots. Ugg boots have also been popular with surfers and competitive swimmers since at least the 1960s, for keeping warm while out of the water. The terms ugg boots, ugh boots and ug boots have been used as generic terms for sheepskin boots in Australia since the 1970s, when they first appeared in advertising and other publications. The natural insulative properties of sheepskin gives thermostatic properties to the boots: the thick fleecy fibres on the inner part of the boots allow air to circulate and keep the feet at body temperature. This means that Ugg boots can be worn without socks or tights (even in relatively cold weather).