Port Ludlow is a census-designated place in Jefferson County, Washington, United States. It is also the name of the marine inlet on which the CDP is located. The CDP's population was 1,968 at the 2000 census. Originally a logging and sawmill community, its economy declined during the first half of the 20th century. Following the completion of the nearby Hood Canal Bridge in 1960, Port Ludlow became the site of resorts and planned communities, attracting more affluent residents who were retired, buying vacation homes, or needing a more convenient commute to the business centers on the west side of Puget Sound. Based on per capita income, Port Ludlow ranks 16th of 522 ranked areas in the state of Washington, and the highest rank achieved in Jefferson County. Port Ludlow's location and marina facilities make it a convenient and popular port for leisure craft sailing between Puget Sound and the San Juan Islands.