What is Oud? Oud, also known as Oudh, Agarwood, or "liquid gold," is one of the rarest and most expensive perfume ingredients in the world. It is a fragrant resin that forms in the heartwood of Aquilaria and Gyrinops trees when they become infected with a specific mold (Phialophora parasitica). The tree reacts by producing a dark, aromatic resin, which gives oud its rich, complex scent.