Abstract We present optical observations and analysis of the bright type Iax supernova SN 2020udy hosted by NGC 0812. The evolution of the light curve of SN 2020udy is similar to that of other bright type Iax SNe. Analytical modeling of the quasi-bolometric light curves of SN 2020udy suggests that 0.08 ± 0.01 M _⊙ of ⁵⁶Ni would have been synthesized during the explosion. The spectral features of SN 2020udy are similar to those of the bright members of type Iax class, showing a weak Si ii line. The late-time spectral sequence is mostly dominated by iron group elements with broad emission lines. Abundance tomography modeling of the spectral time series of SN 2020udy using TARDIS indicates stratification in the outer ejecta; however, to confirm this, spectral modeling at a very early phase is required. After maximum light, uniform mixing of chemical elements is sufficient to explain the spectral evolution. Unlike in the case of normal type Ia SNe, the photospheric approximation remains robust until +100 days, requiring an additional continuum source. Overall, the observational features of SN 2020udy are consistent with the deflagration of a carbon–oxygen white dwarf.