It was built by Çelebi Mehmed in the first half of the 15th century to bring income to the Yeşil Kulliye. It is estimated that the architect of the khan was Hacı İvaz Pasha, a valuable statesman, soldier and architect of the period.


It took this name because it was the khan where silk makers started to gather in the early days. It was referred to as "Sultan Khan", "Han-ı Harir", "Old Silk Khan" in the old records as well as " Cartwright Khan".


Built in the style of classical Ottoman Khans, the two-storey building with portico and courtyard has thirty-nine rooms on the ground floor and forty-two rooms on the upper floor. It is one of the biggest inns of Bursa. Today, there are tailor workshops and clothes shops in the inn.