The greater Chittagong area including Cox's Bazar was under the rule of Arakan Kings from the early 9th century until its conquest by the Mughals in 1666 AD. When the Mughal Prince Shah Shuja was passing through the hilly terrain of the present day Cox’s Bazar on his way to Arakan, he was attracted to the scenic and captivating beauty of the place. He commanded his forces to camp there. His retinue of one thousand palanquins stopped there for some time. A place named Dulahazara, meaning "one thousand palanquins," still exists in the area. After the Mughals, the place came under the control of the Tipras and the Arakanese, followed by the Portuguese and then the British.
The name Cox's Bazar/Bazaar originated from the name of a British East India Company officer, Captain Hiram Cox who was appointed as the Superintendent of Palonki (today's Cox's Bazar) outpost after Warren Hastings became the Governor of Bengal following the British East India Company Act in 1773. Captain Cox was especially mobilized to deal with a century long conflict between Arakan refugees & local Rakhains at Palonki. The Captain had rehabilitated many refugees in the area, but had died (in 1799) before he could finish his work. To commemorate that, a market was established and named after him, called Cox's Bazar (market of Cox). Cox's Bazar than was first established in 1854 and became a municipality in 1869.
After the Sepoy Mutiny (Indian Rebellion of 1857) in 1857, the British East India Company was highly criticized and questioned on humanitarian grounds, specially for its Opium trade monopoly over the Indian Sub-Continent. However, after its dissolution on 1 January 1874, all of the company's assets including its Armed Forces were acquired by the British Crown. After this historic take over, Cox's Bazar was declared a district of the Bengal Province under the British Crown.
After the end of British rule in 1947, Cox's Bazar remained as a part of East Pakistan