Located at the beginning of al-Rashid Street and near al-Maidan Square, it's one of the oldest localities in Baghdad which dates back to the Abbasid Caliphate.

The locality was also home to many personalities of Iraq such as Iraqi artist Nazem al-Ghazali and former-Iraqi Prime Minister Nuri al-Said.

[1] The word "Khana" means "residence, dwelling" in the Persian language while the origins of the name "Haydar" is disputed, but its first attestation is the given name of the Sogdian Iranian prince of Usrushana, better known as al-Afshin.

The mosque represents a great historical and revolutionary symbol for Iraqis as it enjoyed the gathering of many demonstrations against British forces.

The mosque includes a number of Madrasa for teaching Islamic sciences, and a library containing works by the most prominent scholars of the country.