[1][2] During the British Raj, Bhendi Bazaar was built as a labor camp for workers, engaged in the development of Bombay, to stay in.

The buildings of the labor camp were later sold to private owners who in turn accommodated tenants based on the local pagri system.

As of 2011[update], the area is set to be revamped with the project being undertaken by the Saifee Burhani Upliftment Trust initiated by Mohammed Burhanuddin, head of the Dawoodi Bohra community.

[5] The area houses Raudat Tahera, the mausoleum of the 51st and 52nd Dai-al-Mutlaq of the Dawoodi Bohras, Taher Saifuddin and Mohammed Burhanuddin.

[8] The famous Bollywood singer Mohammad Rafi lived in Bhendi Bazaar when he moved to Bombay from Lahore in the early 1940s.