The town is known for its Islamic monuments from the Ilkhanid period and its association with the mystic Bayazid Bastami.

The 19th-century poet, Abbas Foroughi Bastami, lived in Bastam for a time and thence acquired its name as his own.

The early Bábí leader and martyr Mullá ʻAlíy-i-Bastámí was also raised in Bastam, and was a significant figure in the Shaykhi movement and later became the first person known to have died for their allegiance to Bábism.

[6] A tradition says that the town was founded by Vistahm, uncle of the Sasanian king Khosrau II.

[7] The historical town of Bastam embraces the holy shrine of Mohammad Ibn Jafar Sadegh (AS), Bayazid Bastami tomb, Bayazid Monastery, Bayazid Mosque, Eljaito Iwan, Ghazan Dome, Jame Mosque, Kashaneh Tower, and Shahrokhieh School, which were built in different eras from Seljuk era (1037–1194) to Qajar period (1789–1925).