The L-shaped Lan Kwai Fung was a heaven for the hawkers before the Second World War. In the beginning of the square, there were a good number of marriage arrangers housed in the square, where most of the mediators were females, and mediated marriage between two families. Commonly they were known as Mui Yan and the square was known as Marriage Arranger Lane. The square was placed on the map of Hong Kong for the successful disco arranged in 1977 by Gordon Huthart, the son of a local businessman Robert Huthart.

Thereby, Gordon is termed as the father of Lan Kwai Fong. Now the famous western style restaurant – California was opened in 1980 in Lan Kwai Fong by Alan Zeman. Zeman later invested on property development and spent about HK$ 32 million following his restaurant business successand formed Lan Kwai Group. Now the older clubs and restaurants’ combination has made the square a most visiting place in Hong Kong. Now it is mostly popular for its buzzing and glamorous night life. There was a rise of construction site from 2011 as Zeman decided to replace his part of Lan Kwai Fong. It also helped in booming surrounding business of the square.

About 21 people were killed and many others were injured in a massive stampede in January, 1993. The disaster occurred as people gathered Lan Kawi Fong to celebrate the New Years Day. Over 15,000 people gathered at the square before the New Years countdown at that time, but the area could not support the huge crowd. Currently, there are about 80 bars and restaurants are serving in the street and mostly foreigners work here.