The han is located in the central historic market district that extends from the Grand Bazaar to the Eminönü neighbourhood on the shore of the Golden Horn.

[1] Since the founding of the first bedesten by Mehmet II in the mid-15th century, the Grand Bazaar developed into the city's main hub of international trade, spawning entire districts of shops, warehouses, and merchant lodgings.

[2][4] Its revenues were used to finance the upkeep of the Çinili Mosque she had founded earlier in Üsküdar, the Asian district of Istanbul, through the use of the usual waqf system.

[2] An Iranian presence in the city had long existed thanks to Istanbul's position in the Silk Road and due to invasions and political upheaval which had displaced migrants from Iran.

[2] However the community grew in number and importance during the 19th century following the Treaties of Erzurum (1823-1847) which allowed for the resumption of trade and diplomatic relations between the Ottoman Empire and Qajar Iran.

[1] While traditional caravanserais typically featured only one central courtyard, the hans of Istanbul grew in complexity over time and sometimes demonstrated irregular floor plans in order to adapt to limited space in the densely built-up city.

[2] Although the han remains representative of the commercial architecture of its time, it has been modified frequently over the centuries in order to expand and adapt it to evolving needs.

[2] The northeastern corner of the building notably incorporates the substantial remains of a large Byzantine stone tower, though there is still some dispute as to its origin.