Putin and his wife, Lyudmila, arrived on July 1 at the Bush family compound in Kennebunkport, Maine.
Putin is the first foreign leader Bush has invited to his family's summer home there.
RFE/RL correspondent Yury Zhigalkin, reporting from Kennebunkport, said Putin was also greeted by more than 1,000 protesters, who gathered near the Bush home to sing protest songs and to call for an end to the Iraq war.
A number of the demonstrators also called for Putin to withdraw troops from Chechnya.
'Friendly' Talks
Bush and Putin then held what are described as two hours of informal talks that Russian Foreign Minister Sergei Lavrov described as "very friendly" and conducted "with a sense of humor."
"[They] discussed the situation in both the United States and Russia, the evolution of democracies in the two countries," Lavrov told reporters in Kennebunkport. "Both presidents understand very well that any development of events should not result in Moscow-Washington bilateral relations becoming hostage to any internal political situation that could be connected to the preelection campaign."
A breakfast meeting is planned today, to be followed by a news conference and lunch.
Modest Expectations
Both Washington and Moscow are warning not to expect any formal agreements at the end of the 24-hour period the two men and their top aides will spend together.
The so-called "lobster summit" at the Atlantic seaside resort comes amid heightened tensions between the United States and Russia.
Russia objects to U.S. plans to place parts of its missile-defense shield in Poland and the Czech Republic.
The two sides also disagree over the future status of the Serbian province of Kosovo.
Washington also wants Moscow to do more to pressure Iran over its controversial nuclear program.
(with agency reports)