In this type of asexual reproduction a small bud-like outgrowth develops at the parent cell.This bud enlarges in size.The nucleus also enlarges in cell and get divided into two equal part.Out of these two nuclei, one goes into developing bud; When the bud attains the size of a parent cell, a separating wall is laid down between the bud and parent cell. This bud detaches from the parent cell.

This type of reproduction occurs in yeast, hydra.