Among the dioceses of the Archbishopric of Karlovci (Metropolitanate), Buda was the smallest in terms of number of adherents. Its significance, however, was disproportionate to its size. During the eighteenth century, there were several influential Serbian bishops (such as Sinesije Živanović, Sofronija Kirilović, and Arsenije Radivojević) and archbishops (including Vikentije Jovanović, Isaija Antonović, and Pavle Nenadović) in the Habsburg Monarchy who came from the Diocese of Buda. In the Diocese of Buda, the class of merchants, traders, and the educated were more sophisticated than in any other Orthodox diocese in Hungary. This left a significant impact on Serbian history because they played an important role in the assemblies, which were the Serbs’ most important secular institution within the Habsburg Monarchy. This paper will first consider the beginnings of the Diocese of Buda, which was formed during the mid-16th century when Hungary was part of the Ottoman Empire. Then the development of the diocese will be analyzed, starting from 1695, when it was established according to the Privileges of Emperor Leopold I, until 1791, when it was headed by Dionisije Popović (Papazoglu), who until then had been the Metropolitan of Belgrade, and under whom a new period in the diocese’s history began. The paper will then address the history of Orthodox church building, the influence of bishops both inside and outside the Diocese of Buda, and the considerable differences between the northern and southern parts of the diocese.