Rüstem Pasha, Grand Vizier of Suleiman the Magnificent, had it built by Mimar Sinan. It is one of the interesting examples of classical Ottoman architecture and one of the magnificent buildings of the Magnificent Period. It is in the plan of courtyard inns. Two-storey rooms were placed around the rectangular courtyard.
The faces of the floors facing the courtyard are porticoed. Behind the porticoes are rooms with hearths and niches. On the long sides, there are staircases going up on opposite sides. Brick ornamentation on the upper floor window and door arches is interesting. The walls built of cut stone and brick give the building a monumental appearance. Rüstem Pasha Caravanserai was restored in 1972 and turned into a hotel and received the Aga Khan Architecture Award in 1980 for this successful restoration.