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. He embarked upon the task of rehabilitation and settlement of the Arakanese refugees in the area. Captain Cox died in 1799 before he could finish his work. To commemorate his role in rehabilitation work, a market was established and named Cox's Bazar after him. Unlike many locations in the Indian Subcontinent where place names dating from the colonial period have been changed, Cox's name is still retained in the city he founded.
Today, Cox's Bazar is one of the most visited tourist destinations in Bangladesh, although not a major international tourist destination. In 2013, the Bangladesh Government formed the Tourist Police unit to protect local and foreign tourists better, as well as to look after the nature and wildlife in the tourist spots of Cox's Bazar.
In 2017, the Kutupalong refugee camp for Rohingya people escaping from Myanmar opened near Cox's Bazar
