Established as a center of trade in the Mamluk era and named for one of its several historic caravanserais, the bazaar district has since become one of Cairo's main attractions for tourists and Egyptians alike.

[1] Cairo was originally founded in 969 CE as a capital for the Fatimid Caliphate, an empire which by then covered much of North Africa and parts of the Levant and the Hijaz.

Jawhar al-Siqilli, the general who conquered Egypt for the Fatimids, was ordered to construct a great palace complex to house the caliphs, their household, and the state's institutions.

[5] Between 1087 and 1092, Badr al-Jamali, the vizier under Caliph al-Mustansir, undertook the task of enlarging the city and building the stone walls and gates that still partly exist today.

II) Cairo was only definitively opened to all people under the rule of Saladin, who dismantled the Fatimid Caliphate in 1171 and embarked on the construction of a new fortified Citadel further south, outside the walled city, which would house Egypt's rulers and state administration.

[5] At the same time, the nearby port city and former capital of Fustat, until then the economic hub of Egypt, was in a slow decline, further paving the way for Cairo's ascendance.

Waqfs were charitable trusts under Islamic law which set out the function, operations, and funding sources of the many religious/civic establishments built by the ruling elite.

Among the early and important examples of this institution in Cairo's center was the complex of Sultan Qalawun, built in 1284–85, which included a madrasa, hospital, and mausoleum.

This was partly a consequence of the authorities wishing to impose greater control on commercial activities: fixed structures could be counted, taxed, and regulated more easily than makeshift market stalls that could come and go.

[2]: 147  During Barquq's first reign (1382–1389) his Master of the Stables (amir akhur), Jaharkas al-Khalili, demolished the Fatimid mausoleum (Turbat az-Za'faraan) to erect a large khan at the heart of the city.

In Sultan Qaytbay's time one of his amirs, Yashbak min Mahdi, built the Rab' al-Badistan, an apartment complex for renters, just across from the Khan al-Khalili.

By the late 15th century, the district around Khan el-Khalili had become the major center of foreign trade, including the sale of slaves and precious stones.

In addition to building his own religious and funerary complex and a large Wikala named after him nearby, he demolished the original khan built by al-Khalili and rebuilt it in 1511.

In contrast with the Mamluk period, new religious complexes were rarely built, but many small mosques or prayer areas were added inside existing commercial buildings.

[6] The district underwent significant modifications and re-developments again in the 19th and 20th centuries alongside major developments in the urban fabric of modern Cairo to the west.

[9] Among other important re-developments was the construction of about two dozen new residential blocs with ground-level shops in the eastern sector of the souq, initiated by the princess Shawikar in the late 1930s.

[6][10]: 81  Although less widespread than in earlier days, many crafts workshops continue to operate within the bazaar (usually in the courtyards or upper floors of buildings) and in the surrounding districts, manufacturing some of the products sold here or exported elsewhere.

Pivotal events of Neal Stephenson's novel The Confusion (2004), which is the second book of his The Baroque Cycle series, are set in the caravanserai within Khan el-Khalili.

Mohammed Avdol, one of the main characters of Stardust Crusaders, the third part of JoJo's Bizarre Adventure, owns a fortune-telling shop in Khan el-Khalili.

The suicide attack in the market, on April 7, killed 21 people (eleven Egyptians, two French tourists, one American, and seven foreigners of unidentified origin).