The pumi is believed to have been bred in the 1700-1800's by crossing the puli with german and french erect-eared sheepdogs. Later terrier was probably bred in as well, most likely fox terrier. The pumi is an excellent cattle herder, but has also been used to herd sheep and pigs. It is very alert while working and barks often and loudly. It is also an excellent ratter, and has been used to hunt small game.

Outside Hungary the pumi is mainly kept as a companion dog, but its livelyness means that it requires a lot of physical and mental stimulation. It has very typical ear shape that reminds one of the koala.

The pumi is a medium size dog, rather like a terrier in looks and with a lively temperament. The head should be elongated, with little stop and pointed muzzle. The ears are set high, erect with tipped over tips and of medium size. The neck is set high, of medium length and slightly arched. Short back that slopes down from the shoulders, with a deep chest and visible tuck up. Because of the short body, the legs appear rather long, giving the dog a square appearance. The tail is set high and carried upwards-backwards. The coat is of medium length and rather curly in texture.