The history of Cox's Bazar is closely interwoven with its geographical location on the coast of the Bay of Bengal and the centuries-old succession of rulers. The first mentions of this area date back to the 9th century, when it was under the rule of the Arakan kings. In 1666, the region came under the control of the Mughal Empire. According to legends, the Mughal Prince Shah Shuja, while passing through, was so charmed by the beauty of these places that he ordered a camp to be set up. To commemorate this event, one of the areas still bears the name Dulahazara, which translates to "thousand palanquins".
The city received its modern name in honor of Captain Hiram Cox, an officer of the British East India Company. In the late 18th century, he was appointed superintendent of the Palongkee outpost (the old name of the city) and dealt with the rehabilitation of refugees from Arakan. In recognition of his services, a market was established here after his death in 1799, named in his honor — Cox's Bazar (Cox's Market). Over time, this name became attached to the entire settlement, which began to actively develop as a trading and administrative point.
The key factors in the formation of Cox's Bazar were its advantageous coastal position, which facilitated the development of fishing and maritime trade, as well as its administrative status. In 1854, the settlement became an administrative centre, and in 1869 officially received the status of a municipality within British India. From the very beginning, the city's economy was oriented towards the sea, which remains one of its main features today alongside tourism. Its location within the territory of modern Bangladesh defined its further cultural and economic development in the 20th century.