Bandar was established as a thana in 1964. During the Bangladesh Liberation War of 1971, a mass killing was conducted in Sirajdoullah Club playground leading to the death of 54 people on 3 April. On 22 November, a brawl took place between the Pakistan Army and the Bengali freedom fighters at the banks of the Shitalakshya in Dhamgar. Another battle took place 5 days later in which a Pakistan Army gunboat was destroyed and numerous Pakistan Army soldiers killed. Defeated again on 12 December, the Pakistan Army fled to the western side of the Shitalakshya. A direct encounter took place in Bandar Railway Station where many soldiers were killed or wounded and were forced to surrender. Bandar Thana became liberated on 15 December. In 1993, Bandar Thana's status was upgraded to upazila.