The Mughal prince Shah Shuja set off with his forces to Arakan after being defeated in the war of imperial succession.

Some elders have located the place of this incident to be an eidgah in the village of Yusufer Khil in Islamabad Union.

His capital was at Chowfaldandi (presently in Cox's Bazar Sadar Upazila), where his palace can still be seen in Khamarpara and the stairs of his kachari in the hills.

Other zamindars of the area included Muhammad Shiqdar, the Amir of Masuakhali, who is credited for the development of the Eidgaon Bazar Central Mosque in 1946.

Tayyabullah Faraizi of Farazipara became the dominant zamindar of greater Eidgaon in the 1960s during the rule of Ayub Khan.

A memorandum was sent to the Cox's Bazar District Commissioner for the declaration of Eidgaon as a separate upazila on 22 July 2019.

The National Implementation Committee for Administrative Reorganization-Reform (NICAR) established Eidgaon as a thana on 21 October 2019.