Port Ludlow is a census-designated place (CDP) in Jefferson County, Washington, United States. The 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 east side of Puget Sound. Based on per capita income, one of the more reliable measures of affluence, Port Ludlow ranks 16th of 522 areas in the state of Washington to be ranked. It is also 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.