Kuala Lumpur, originally a small hamlet, was founded in the mid-19th century as a result of the burgeoning tin mining industry. The region attracted Chinese miners, who set up mines around the Selangor River, and Sumatrans who had established themselves in the Ulu Klang area. The town began to take shape around Old Market Square, with roads extending to various mining areas. Kuala Lumpur's establishment as a significant town came around 1857 when Raja Abdullah bin Raja Jaafar and his brother, with funding from Malaccan Chinese businessmen, employed Chinese miners to open new tin mines. These mines became the lifeblood of the town, which served as a collection and dispersal point for tin.

In its early years, Kuala Lumpur faced several challenges. Wooden and 'atap' (palm frond thatched) buildings were susceptible to fire, and the town was plagued by diseases and floods due to its geographical positioning. Moreover, the town became embroiled in the Selangor Civil War, with various factions vying for control over the rich tin mines. Significant figures like Yap Ah Loy, the third Chinese Kapitan of Kuala Lumpur, played pivotal roles during these turbulent times. Yap's leadership and his alliance with British officials, including Frank Swettenham, contributed to the town's recovery and growth.

The British colonial influence was instrumental in shaping Kuala Lumpur's modern identity. Under British Resident Frank Swettenham, the town underwent significant improvements. Buildings were mandated to be made of brick and tile for fire resistance, streets were widened, and sanitation improved. The establishment of a railway line between Kuala Lumpur and Klang in 1886 further boosted the town's growth, with the population surging from 4,500 in 1884 to 20,000 by 1890. By 1896, Kuala Lumpur's prominence had grown such that it was chosen as the capital of the newly formed Federated Malay States.