Captain Advocate Fazlul Karim, the first Chairman (after independence from the British) of Cox's Bazar Municipality established the Tamarisk Forest along the beach to draw tourist attention in this town and also to protect the beach from tidal waves. He also donated many of his father-in-law’s and his own lands for establishing a Public Library and a Town Hall for the town. He was inspired to build Cox's Bazar as a tourist spot after seeing beaches of Bombay and Karachi, and one of the pioneers in developing Cox's Bazar as such. He founded a Maternity Hospital, the Stadium and the drainage system by procuring grants from the Ford Foundation and Rockefeller Foundation through correspondence. Mr. T. H. Matthews, the principal of the Dacca Engineering College (1949~1954) was his friend who had helped him in doing this. Engineer Chandi Charan Das was the government civil engineer who had worked on all these projects. In 1959 the municipality was turned into a town committee.In 1961 the erstwhile Geological Survey of Pakistan initiated investigation of radioactive minerals like monazite around the Cox's Bazar sea-beach area.
In 1971, Cox's Bazar wharf was used as a naval port by the Pakistan Navy's gunboats. This and the nearby airstrip of the Pakistan Air Force were the scene of intense shelling by the Indian Navy during Bangladesh Liberation War. During the war, Pakistani soldiers killed many people in the town including eminent lawyer Jnanendralal Chowdhury. The killing of two freedom fighters named Farhad and Subhash at Badar Mokam area is also recorded in history.
After the independence of Bangladesh Cox's Bazar started to get the administrative attention. In 1972 the town committee of Cox's Bazar was again turned into a municipality. In 1975, The Government of Bangladesh established a pilot plant at Kalatali. Later, in 1984 Cox's Bazar subdivision was promoted to a district and five years later (in 1989) the Cox's Bazar municipality was elevated to
