In 1688, much of Bungay was destroyed or damaged by the Great Fire. The Market Cross was one of the first buildings to be replaced in order to re-establish trade as quickly as possible. Wooden steps inside the domed structure were provided where traders could sit and display their produce of butter, eggs, and cheeses, so it became known as the Butter Cross.
In 1754 a lead statue of Justice was placed on the top of the dome, as a symbol not only of fair trade in the market, but also because criminals awaiting court trials were temporarily imprisoned in a dungeon beneath the Cross, or in a cage above it. Other miscreants were put in the stocks on market day or received a public flogging. The wrist irons to which they were attached can still be seen on one of the pillars.
The Town Trust has been responsible for the maintenance and repair of the Butter Cross since 1871 when it paid £40 to purchase the rights and dues of the market from the Duke of Norfolk.