Following the end of the British rule in 1947, Cox's Bazar remained a part of East Pakistan. Fazlul Karim, the first chairman of Cox's Bazar after independence from the British, created the Tamarisk Forest near the beach to attract tourism and prevent tidal wave destruction. Karim was motivated to make Cox's Bazar a tourism area after seeing beaches in Karachi and Bombay, and is credited with much of the city's success as a tourist attraction.
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 made significant progress in rehabilitation of refugees in the area, but had died (in 1799) before he could finish his work. To commemorate his role in rehabilitation work a market / bazaar was established and was named after him as Cox's Bazaar (market of Cox). Cox's Bazar thana was first established in 1854 and a municipality was constituted in 1869.
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.
