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KSRTC operated buses to Kundapur, Hebri and Hejamady and Karkala, though with a small number of passengers.
Six buses belonging to a private operator also began to ply between Udupi and Kundapur.
Udupi is the first district in the state to run buses since the COVID-19 lockdown.
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With the Centre relaxing the lockdown rules and allowing public transport in green zones, district deputy commissioner G Jagadeesha had on Tuesday announced the decision to allow KSRTC and private bus services, complying with the health protocol.
The buses are operating with 50 per cent capacity to maintain social distancing and people are asked to compulsorily wear masks.