Okuda was born on June 14, 1854 (7th year of Kaei 嘉永) in Aizu, Mutsu Province, Japan. He was the as the eldest son of Okuda Mankichi (奥田萬吉), who was a retainer of the Tokugawa clan and a ‘Tatsujin’ (達人 master; expert) of Fukuno-ryū Jūjutsu (福野流柔術 - an alternative name for Ryōi Shintō-ryū 良移心当流).From an early age Okuda Matsugoro learnt Fukuno-ryū from his father at his father’s dōjō.

Later he also studied the more popular Kitō-ryū (起倒流) and Tenjin Shin'yō-ryū (天神真楊流) styles, training under master Takeshi Sawada.

In 1879, he fought in a match against a large American wrestler at Shibusawa's residence . This was described as being “like an adult and a child". However, despite his size disadvantage, Okuda won by throwing his opponent onto his back apparently with 'seoinage' (shoulder throw) and 'tomoe-nage' (sacrifice throw). Later in that same year Okuda opened the Kitōr-yū Okuda Dōjō (起倒流奥田道場).

He was eventually appointed to the ‘Keishichō’ (Metropolitan Police Department 警視庁) and taught Jiu-Jitsu at police stations and prisons.

Okuda was a contemporary Kanō Jigorō (嘉納 治五郎) and it seems that he hoped to rival Kano’s early Kōdōkan Jūdō (講道館 柔道), but ironically ended up joining it in later life.

He called this style Okuda-ryū (奥田流, ), which was characterised by the Fukuno-ryū (Ryōi Shintō-ryū) that he had learned from his father, together with the Kito-ryū and Tenjin Shin’yo-ryū. As part of this process, he also wanted to integrate all the Jūjutsu styles in Japan into one synthesis, although he never achieved this.

In later life, Okuda was awarded the title of Jūdō Hanshi (柔道範士 ’top rank master’) by Dai Nippon Butokukai  (大日本武徳会 All Japan Martial Virtue Association). It should be noted that the Dai Nippon Butokukai did not follow the Kōdōkan’s lead in issuing dan ranks until 1917.

In 1901, Okuda opened a Jūdō dōjō in the city of Morioka, he often attended tournaments and also retained job teaching the police. Due to high knowledge and unique approach to throwing, his technique was popularly referred to as ‘Sakki no wazaa’ (殺気の技  assassination technique).

In 1903 Okuda faced a young Mifune Kyūzō (三船 久蔵) in a Jūdō match. Okuda won by throwing Mifune four times, but nonetheless predicted that Mifune would go on to become a Jūdō legend. Mifune became the most skilled and revered 10th Dan Jūdō teacher, so much so that he was afforded the nickname of ‘The God of Jūdō’ (Jūdō no Kamisama 柔道の神様).

Okuda passed away 29th November 1931 at the age of 77.