Hydra reproduces by forming small buds on its body which later develop into tiny individuals. When mature, these tiny individuals detach from the parent body and become new independent individuals. This method is called budding. Hydra also reproduces by fragmentation. Any small fragment of the body of hydra can grow into a full-grown individual. Both these are asexual methods of reproduction. The most common method is budding. Hydra also reproduces sexually by forming gametes in ovary and testes.