During Shahjahan's time itself, an arcade of shops had been built in a half-moon shape. Round this nucleus, in no time, grew a fabulous and prosperous trading center which spread along the wide road and branched into a number of by lanes in all directions.

Originally only this stretch was known as Chandni Chowk. But as the trading center grew in magnificence and prosperity, the whole area from the Fort to Fatehpur grew famous as Chandni Chowk.