The structure was built by Sinan the Architect by the order of Rüstem Pasha, the grand vizier of Sultan Süleyman the Magnificent.
An example of Courtyard Inns, the caravanserai has two main sections. The section with the larger courtyard is called Büyük Han (Large Inn) and t he other section is called Küçük Han (Small Inn) or Deve Hanı (Camel Inn). In the front facade, 21 shops and 102 rooms are located. In the Ottoman-Russian War in 1877-78, the masjid building in t he larger courtyard with a shadirvan below, called Köşk Mescit, was destroyed.
On the second floor of the Büyük Han section, a Turkish Bath with tiles suitable to the period and floor heating was built. The courtyard is surrounded by cloisters and behind those there are two-storied rooms with stoves and niches, covered with domes.
The face stone and brick masonry that is as solid as a fortress strengthens the monumental character of the structure. At the longer sides, stairways face each other.
In the window and door arches upstairs, brick is used. The dome above t he main door that is opened with a round arch is fluted. Rüstem Paşa Caravanserai was renovated into a hotel in 1972 and received the Aga Khan Award for Architecture in 1980.