This khan was built by Bayezid II between 1490 and 1508. It is one of two khans built in Bursa in order to provide income to a kulliye complex in Istanbul owned by Beyazid II. The other one, however, is “Koza” Khan, the covered silk bazaar.

Its architects are Yakup Shah, the son of Sultan Shah, and Ali, the son of Abdullah. In historical records, it is mentioned as “Pirinç Khan”, “Han-i Cedid-i Sani”, and “Han-i Cedid-i Evvel”. As in former times cereals, especially rice, were sold in this khan, it mostly is mentioned as “Pirinç Khan” (or the “Rice” Khan).

 “Pirinç” Khan is known to be the khan where most foreign merchants prior to the 19th century came, and were hosted.

Although it sustained damages in 1519, 1630, 1644, 1670, and in 1855, this khan was renovated according to its original plans, and then opened to the public. While Cumhuriyet Street was being built between 1903 and 1906, a section of its north-facing side, where several shops were located, collapsed.

This structure was thoroughly renovated between 1983 and 2004.