It was labelled a "disgraceful and low act" by Shane Warne on Twitter and he wasn't alone in his condemnation.
England star Buttler had scored 69 runs from 43 balls as his Rajasthan side attempted to chase down Kings XI Punjab's 4-184.
The dismissal is named after Indian bowler Vinoo Mankad, who created controversy when he dismissed Australian batsman Bill Brown twice in a similar manner at the SCG in a 1947 Test match.
This is the second time in Twenty20 history a batsman has been dismissed run out at the non-striker's end for backing up too far, the commentators informed on air. No really argument on that and its pretty instinctive.
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Ravi Ashwin run out Jos Buttler with the IPL's first Mankad dismissal.
Steve Smith made his professional return but could only put 20 runs on the board before falling to Englishman Sam Curran, while Rajasthan's last seven batsmen made no more than six runs each. "I don't know where the understanding of the spirit of the game comes because, if it is there in the rules it is there", said Ashwin later in the post-match press conference.
"I didn't even load and he left the crease", Ashwin said in defence of his actions. We ended on the right side of the coin, but I definitely think that those are game-changing moments. "The match referee will take the call", he said. In 2014 he was run out in similar fashion during a one day global against Sri Lanka.
Curran, who took two wickets, got his revenge in his very next over as he sent Smith trudging back to the pavilion with KL Rahul taking a sharp catch while running to his left from long-on.