The greater Chittagong area including Cox's Bazar was under the rule of Arakan Kings from the early 9th century till 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 main atraction of Cox's Bazar is the long sandy beach that stretches from the mouth of the Bakkhali river going all the way to Teknaf. Although commonly known as Cox's Bazar beach, it stretches far beyond the area designated as Cox's Bazar town.Cox's Bazar, arguably the best tourist spot in Bangladesh, is visited by a large number of tourist from Britain, America, Korea, Japan, India, Nepal, Pakistan and many more countries each year. Though there is no specific record in Bangladesh Porjatan Corporation (BPC) on how many people usually visit Cox's Bazar each year but an AFP report says that during the winter 10,000 available rooms in the beach area hotels usually remain occupied almost seven days a week.[19] Accommodation near the beach varies from an expensive range to a reasonable price. Many private hotels, BPC Motels and two Five Star hotels are located near the beach.

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