The Madrasa was built in 1472 by Mahmud Gawan. It was once a center of learning, and students even came from abroad to study philosophy, theology, mathematics, Persian, and Arabic.

The three-storied building stands on a raised platform. The entrance used to be through two large arches which led to a portico from where covered passages led to the interiors. There were two minarets at the entrance, of which only the northeast one still remains. The minarets were decorated with calligraphic text and red, blue, and white Persian glazed tiles set in zigzag patterns. The colored tiles also once covered most of the Madrasa's facade, though only traces of the tiles remain today.

Later, in 1697, the Mughal army occupied the Madrasa, and an accidental explosion of gunpowder damaged the building.