According to Munshi Abdullah (regarded as Father of Modern ay Literature) who visited Kuala Terengganu in 1836, there was a large Chinese quarter with a Chinese Capitan (Chinese leader) named Kapitan Lim Eng Huat (1798-1847). He was said to be the second Kapitan of the Chinatown. The Hokkien Chinese were the earliest and largest group of Chinese settlers, and hence, the Hokkien dialect is commonly used there.  By the mid-1800s, the Chinese population of Kuala Terengganu increased rapidly as new Chinese immigrants arrived. Kuala Terengganu, which is strategically located on the east coast of Peninsular Malaysia, was a natural stopping point for those who plied the trade route between China and Southeast Asia in the early days. Kampung Cina became the most densely populated Chinese area in Terengganu.

Today, a stroll through Kampung Cina on Jalan Bandar (Bandar Road), Kuala Terengganu, is like taking a step back in time. Two rows of 195 shop houses which date back to the late 1800s flank the road. One row of shop houses is built along the right bank of the Terengganu river. Many of these shop-houses have extensions at the back facing the river.

Some of these extensions date back to a time when the riverside shop houses had back entrances and jetties for loading and unloading goods from boats. In the early days, the river was the essential mode of transport. Today, these jetties at the back of some of these shop houses are used for speedboats.  There is a hawkers' centre at the back of the other row of shop-houses that sells various types of local food.