Until 1991, the area of Bandar Utama consisted of nothing more than palm oil estates with fewer than 100 people. In the early 1990s, development began in Bandar Utama under See Hoy Chan Holdings Sdn. Bhd., and an attempt to modernise the area was made, with the opening of a TV3 station in Bandar Utama was opened since on 1 April 1996, as well as the 1 Utama Shopping Centre, which became increasingly well known after the Jaya Jusco chain of department stores shifted one of its outlets from nearby Taman Tun Dr Ismail, Kuala Lumpur to Bandar Utama in 1995.
With the opening of several new schools in 1997 and 1998, as well as the establishment of Kolej Bandar Utama, a tertiary institution, Bandar Utama continued to grow. As of 2004, construction of additional residential precincts of BU7, BU10 and BU6 (comprising 2½-storey houses) were completed. These are newer sections of Bandar Utama compared to the older sections, BU1 until BU4, which were completed in phases beginning from 1991 until 1996.
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