Kota Bharu was founded during the late 19th century. Before the establishment, Kota Bharu was home to Kelantan's Royal Palace, then established by
Sultan Muhammad II of Kelantan in 1844 as Kelantan's state capital who wanted the new state capital built in his honour. Prior to this, Kota Bharu was known as Kuala Kelantan. Before Kota Bharu assumed the role, the Kelantanese capital was divided into two which were Kota Kubang Labu and Kota Pengkalan Datu. During the 19th century, Kelantan was a prosperous and populous state with a population of around 30,000 to 50,000 people including a thousand Chinese. Production from within the state include gold, tin ore, black pepper, areca nut, rice, rattan, bamboo, agarwood and songket. Kota Bharu acts as entrepot for goods due to its strategic location beside the Kelantan River. During World War II, Pantai Sabak, about from Kota Bharu, was the initial landing point of the Japanese invasion forces on 8 December 1941, beginning the
Battle of Kota Bharu, the first battle of the
Malayan campaign. Japanese forces captured the city and would go on to successfully engage the British in jungle warfare and ultimately capture
Singapore. Kota Bharu was declared as the "Cultural City" on 25 July 1991 by the late
Sultan Ismail Petra on the basis of two important aspects – the history of Kota Bharu and the uniqueness of its local arts and cultures. Kota Bharu was rebranded as the "Islamic City" () by the Kelantan State Government on 1 October 2005 through its "Developing With Islam" () policy. ==Government==