The city acquired its current name in 1927. The city's
historic name is MaÞhad-e Sar or Mashhadsar, meaning "the special way to Mashhad,
referring to the only road connecting the northwest of Iran to the northeast,
including Mashhad, which passed through Babolsar. By the 18th century, Babolsar
had become a busy commercial port. During the reign of Nadir Shah, it was the
base for Iran's Caspian fleet. By 1909, the port yielded 12 percent of the
total customs revenue of Iran. However, by 1895, ports in Gilan were already
competing with Babolsar.
During Reza Shah's reign, Babolsar lost much of