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The Old Town of Budva is situated on a rocky peninsula, on the southern end of Budva field.
Archaeological evidence suggests that Illyrian settlement was formed on the site of the Old Town before Greek colonization of the Adriatic.
In the 6th century, Budva was part of the Byzantine Empire, and in the following two centuries, Slavs and, to a lesser extent, Avars began to arrive in the area, mixing with the native Roman population.
Budva bay was reportedly known as Avarorum sinus (Avar bay') during the Avar incursions.
Substantial documentary evidence provides historical references dating back to the 5th century BC.The coastal area around Budva, called the Budva riviera, is the center of Montenegrin tourism, known for its well-preserved medieval walled city, sandy beaches and diverse nightlife.