Founded by Mahmud Pasha, the grand vizier of Mehmet II, it was completed in 1466 and is one of the oldest surviving bathhouse structures in the city.
The hamam is part of a külliye, a religious and charitable complex that was founded by Mahmud Pasha, the grand vizier of Sultan Mehmet II Fatih "the Conqueror".
The waqf (endowment) of the mosque and its associated charitable buildings was quite extensive, covering a number of different buildings across the surrounding district, which suggests that Mehmet II may have entrusted Mahmud Pasha with developing this district near the commercial heart of the city, just east and north of the area which would become the Grand Bazaar.
The surviving building includes a large domed chamber at the entrance which was originally the men's changing room.
The dome of the changing room, the largest in the Mahmut Pasha complex, is 17 meters in diameter and has muqarnas squinches at its corners.