The name is derived from Khadija bint Khuwaylid, the wife of Prophet Muhammad who was a businesswoman on that time. Thus, this market also is dominated by women sellers. The market was originally established as Buluh Kubu Market (Malay: Pasar Besar Buluh Kubu) in 1985 and opened to the public by Sultan Ismail Petra. The foundation stone of the building was laid by Tengku Razaleigh Hamzah. The market was then renamed by Kelantan Menteri Besar Nik Abdul Aziz Nik Mat in 1997. The market is housed in a four-story building.Fresh goodies, ready-to-eat foods, local snacks and drinks can be found sold in the market.

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