The town also lies on the banks of the Kushiyara River, which also takes its name from sugarcane.
The popularity of bangles in the area increased so much that the town eventually became known as Balaganj Bazaar.
[5] After the Conquest of Gour in 1303, many disciples of Shah Jalal migrated to modern-day Balaganj (Gauharpur Pargana) where they preached Islam to the local people such as Aziz Chishti.
Balaganj thana was established in 1882 and included present-day Osmani Nagar, Fenchuganj and Rajnagar.
Balaganj was the scene of the battles at Sherpur and Sadipur during the Bangladesh Liberation War in 1971.
Balaganj stands on the Kushiyara River and is on the southwest periphery of Sylhet district.
Balaganj had a literacy rate (age 7 and over) of 50.11%, compared to the national average of 51.8%, and a sex ratio of 1051 females per 1000 males.
Main occupations Agriculture 26.04%, service 24.51%, commerce 18.22%, agricultural labourer 11.31%, wage labourer 7.25%, fishing 4.29%, transport 1.97%, others 6.41% Balaganj Upazila is divided into 14 union parishads: Balaganj, Boaljur Bazar, Burunga, Dayamir, Dewan Bazar, Goula Bazar, Omarpur, Osmanpur, Paschim Gauripur, Paschim Pailanpur, Purba Gauripur, Purba Pailanpur, Saidpur, and Tajpur.