Gazi Husrev Bey's Khaniqah was first mentioned in the vakufnama (endowment) established by Gazi Husrev Bey in 1531 and it is presumed that this object, which is where the principles of tesavvuf (sufism, Islamic mysticism) were taught, was built in 1530.

Khaniqah had 14 rooms, a semāhana (a space for religious ceremonies), which took up three rooms, and the portico. The semāhana and individual rooms were covered by cupolas, creating a unique spatial impression.

In 1756 the hanikah was badly damaged in a fire and was later renovated in 1779. It suffered damage in another fire in 1832 and, while the north wing of the building, Đulagin Dvor (which is now home to Gazi Husrev Bey’s Medresa) was being built, the hanikah was almost totally destroyed.

In 2000, Gazi Husrev Bey’s Khaniqah underwent a thorough reconstruction based on the original design. The inner courtyard was covered with a glass roof, which lends a special ambience to the structure.

Gazi Husrev Bey’s Medresa makes use of the Khaniqah, and promotions and exhibits are also held here. Given the interior’s unique exhibition space, it typically hosts five to six events every year.