It stands on the site of the Mausoleum of Husayn, who was a grandson of Muhammad, near the place where he embraced martyrdom during the Battle of Karbala in 680 CE.

Every year, millions of pilgrims visit the city to observe Ashura, which marks the commemoration of Husayn's death for all Muslims.

The grave of Husayn ibn Ali is found in the middle of the precinct, it is called the Rawḍah ("garden") and it has several doors.

On the right hand side of the entrance is the tomb of Habīb ibn Madhahir al-Asadī (حبیب ابن مظاهر الاسدی), a friend and companion of Husayn since their childhood and a casualty of the Battle of Karbala.

[8] Despite many attempts by successive rulers, such as Al-Rashīd and Al-Mutawakkil, to put a restriction on the development of the area, it has nonetheless evolved into a city.

However, heavy restrictions were put in place to prevent people from visiting the grave during the rule of Hārūn al-Rashīd, the fifth Abbasid caliph (reign: 786–809 AD).

On the other hand, the historian Ibn al-Athir, stated that in the year 981 AD (371 AH), 'Adhud ad-Dawlah became the first to expansively lay the foundations for large-scale construction and to generously decorate the place.

He also built houses and markets around the precinct, and surrounded Karbalā with a high boundary wall, turning it into a strong castle.