The Demaru clan started off from Jugo's Clan. Jugo's Clan and another similar clan had strange abilities, they were both able to transform themselves into strange demonic creatures. These two clans got along great, they eventually joined together and came one clan. During the Second Great Ninja War, the two clans got split up again into three, two of them the pures and the other one was the Crossbred Children. The Crossbreeded Ninja became known as the Demaru clan who had more control over their powers than anyone, and were considered the Strongest Ninja out there. Eventually these Ninja were able to join the Leaf Village where they evolved as a clan, the Strongest Clan in the Leaf Village.