Readers are first introduced to the insult of 'Mudblood' by Draco Malfoy in "Chamber of Secrets", when he calls Hermione a mudblood. Ron later tells Harry and Hermione, neither of whom had previously heard the term (because they were brought up in the Muggle world), that Mudblood is one of the worst insult that can be used, as it literally means 'dirty blood'.
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