Lukovo Šugarje-initially a local development center, south of Karlobag and situated in the cove bearing the same name and a short strait connects it with the open sea.

The settlement dates from the Middle Ages and was abandoned in the 17th cent. Later it revived with many localities on the nude and steep slopes of the maritime Velebit. The church of St. Luke the Evangelist was built in the 18th century and renewed in 1873. The parish was established in 1809.

The local cistern was built next to the church in 1840. The elementary school was opened in 1907 although the inhabitants of Lukovo had demanded it from the military headquarters in Zagreb back in 1875.