This khan was built by Bayezid Pasha in the first quarter of the 15th century, in order to provide income to his mosque and his madrasah built on his own name in Yeşil neighbourhood. Bayezid Pasha was the chief grand vizier of Çelebi Sultan Mehmed.

During the Byzantine period prior to the Ottoman period, this zone was called “Taht-El Kale”, a place where the horses were tied, and which was used as an infirmary for them. Together with the starting of the town’s growing outside the fortress during the Ottoman period, a neighbourhood and a covered market were established in this zone. The name “Tahtakale” deriving from “Taht-el-kale” means “Kale Altı”, or “Under the Fortress”. It is known that, in the past, those places where fruits and vegetables were sold were called “Tahtakale”. Moreover, it was also called “Yogurt Han” (the “Yoghurt Khan”), since the villagers brought “ayran”, a yoghurt drink, and yoghurt here, and sold them. This khan is also known as “Bayezid Pasha” Khan.

It is known that this structure was renovated twice, in 1520 and in 1632, respectively. In 1998, a fire destroyed large parts of “Tahtakale” Khan. Historical sources state that there were 21 and 25 rooms on the two-floor khan’s lower and upper floor, respectively. The rooms of both floors at the khan’s east, and only those of the lower floor at the khan’s south have survived to date. The masonry pattern used for the khan’s walls is one row of hewn stones, with two rows of bricks. The walls’ pointed arches are also brick-built.