It was named in honour of Estonian poetess Lydia Koidula (1843-1886).
Earlier the street was named Kadriorg street, later Institute street. In the house number 23 there was an institute of noble maidens. The institute was founded in 1863 by the order of tsar Alexander II.
Anton Hansen-Tammsaare, famouse Estonian writer(1878-1940), lived in this street for a long time.
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