Functional for two centuries after being built in 1472, this institution is an important historical site today. It included 36 rooms for the students, a large and impressive library, a renowned madrasa, a laboratory, and boarding facilities for both students as well as teachers. Apart from the madrasa, the building was also famous because of the artwork and its architectural beauty. Verses from the Quran are also part of the inscription. The front gate is covered in exquisite tile-work. In its hay day, the institution attracted tens of thousands of scholars as well as students from across the Islamic world. Architecturally, this madrasa is similar to another important landmark, the madrasa at Fez.

The structure has been declared as one of importance and is protected by the Archaeological Survey of India (ASI). It was built by Mahmud Gawah or Gawan, a merchant who came to the Bahmani Sultanate. Some say he was in exile from Persia while others say he came to trade. Because if his humble nature and intellectual superiority, he was eventually made the Prime Minister of the kingdom. He managed to garner the respect not just of the rulers but also of the general populace. At the height of its glory, the structure consisted of four minarets, of which one remains standing today.