It was founded in 1852 as a product of the industrialization efforts of the country by hands of government, which started in the mid-19th century. It is on the edge of Cilimboz stream in Muradiye. It was established by the state to produce yarn for silk carpets and fabrics to be used in the palace. The Factory clothed important statesmen of the period, including European palaces. Fabrika-i Humayun, which was restored and its usage area was increased to 8000 m2, has turned into a living education and art center.