The Sultan Abdul Halim Hospital was handed over by the Public Works Department to the Health Ministry on 23 July 2006.
The hospital's history dates back to 1920 when the Medical Officer Central Kedah was set up.
After the British returned at the end of World War II, the psychiatric wing was shifted back to its original home.
Due to the rapid growth of Kuala Muda district, the need for a new hospital that would keep up with the growing needs of the community became evident.
The hospital was handed over by the Public Works Department to the Health Ministry on 23 July 2006.