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The modern Cox's Bazar derives its name from Captain Hiram Cox, an officer of the British East India Company.

Cox was appointed Superintendent of Palongkee outpost after Warren Hastings became Governor of Bengal.

The beach in Cox's Bazar is sandy and has a gentle slope; with a unbroken length of 120 km (75 mi), it is the longest natural sea beach in the world.Cox's Bazar then 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 criticised and questioned on humanitarian grounds, specially for its opium trade monopoly over the Indian Sub-Continent.But it is famous mostly for its long natural sandy beach.The municipality covers an area of 6.85 km 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 its scenic and captivating beauty. His retinue of one thousand palanquins stopped there for some time.

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