This khan is built by Bali Bey, son of Hamza Bey, one of the statesmen during the reigns of Mehmed the Conqueror and Bayezid II, in order to provide earnings to the kulliye complex in Yenişehir, which consists of a mosque and a soup kitchen.

Balibey Khan is situated at the westmost section of the Historical Covered Bazaar and the Inns’ Area where we can find a high concentration of commercially used structures. In the 19th century, it was also called “Vasıf Pasha Khan”. This structure is built on an area with an inclination to the northeast. It consists of two floors at its east, and of three floors at its west where it leans on the slope.

This inn is the only three-floored Khan in Bursa.

In the early 20th century, this khan was used as a depot for mail cars, and served as the city’s mailing service. In later years, some of its sections were used as a shelter and a coffeehouse.
To make this structure stick out, first works were made in 1984. Then, between 2006 and 2009, this inn was restored by Bursa Metropolitan Municipality.