Lugger was born in Hagen in the Prussian Province of Westphalia where his father was a chemistry professor.
Along with his parents, the family moved to the United States in 1864, and Lugger found work as an engineer in the army.
While working on surveys around the Great Lakes, he also began to collect insect specimens and came to know C.V. Riley.
He helped produce nine annual reports before 1875 when he married Lina Krokmann and moved to Baltimore to become curator of the collections of the Maryland Academy of Sciences.
He became an assistant in the entomology division of the United States Department of Agriculture (USDA) in 1885.