Located on Tersane Avenue, just north of the Golden Horn, it is the southern and lower terminus of the 573 m (1,880 ft) railway.

Karaköy station is located at Tersane Avenue No:9 and is on the ground floor of the IETT General Headquarters Building.

Connection to the T1 line of the Istanbul Tram to Kabataş or Bağcılar is available along with ferry service from the two piers in Karaköy.

On 25 August 1875, the cable carrying the northbound train snapped towards near Beyoğlu and the car began to plunge backward toward Karaköy.

A major accident was averted as the driver was able to hit the emergency brakes and stop the train just 40 m (130 ft) short of Karaköy station.