Little over a year ago, it was unclear whether the left-sided player would ever be given an opportunity in the first team at Molineux.
While Bueno has not established himself as a regular in the first XI, a total of 19 starts and 11 substitute outings have been made in all competitions.
Injury and the form of Rayan Ait-Nouri has stinted the 21-year-old's progression in 2023-24, just two starts and five substitute appearances coming since August.
Nevertheless, Wolves have placed their faith in the Spaniard by handing him a contract until the end of the 2027-28 campaign.
Speaking to the club's official website, Bueno said: "I'm so happy to sign this new deal. It's a little bit of a gift from the club for my work and I feel really happy about that, all the confidence they had in me, to give me the chance to play professionally in the Premier League.
"I just want to say thanks to them and hopefully with my hard work I can keep giving them good performances, good matches for the team. To sign five more years here makes me feel at home.
Sporting director Matt Hobbs added: "Since joining us as a 16-year-old number 10, the work that Hugo and the coaches have put into changing his position, and the acceptance he had of doing that, shows what a good pro he is.
"To be able to get his head around a new position and develop at the rate he has was incredible.
"Hugo's one of the huge success stories of the club. Bringing him in from a grassroots team in Spain when he was just 16, and he's now 21, playing in the Premier League and being a regular Premier League player, it's testament to everyone involved."
Bueno will hope to feature in the Wolves squad that his named for their upcoming Premier League fixture against Fulham, which takes place on November 27. body check tags ::