Since there is no endowment deed or founding record for the Orhan Gazi Madrasa in Aşağı Şehir, its exact date of construction is unknown. However, based on the fact that the central building of the complex to which it belongs was constructed around 740/1339–1340, it is generally accepted that this madrasa was also built around the same time—specifically, in the years 740/1339–1340, as stated by researcher Ekrem Hakkı Ayverdi.

In terms of its ancillary structures and integrated design, this madrasa was not built as a standalone structure; rather, it was established as part of a complex that includes a zaviye and a guesthouse adjacent to it, and features a main building with an inverted T-shaped plan that blends Mamluk and local Byzantine construction and decorative techniques. According to the records of researcher Ekrem Hakkı Ayverdi, the structure has undergone various repairs over the course of its history.

In terms of its location, the madrasa is situated outside the citadel—that is, the old city walls—in the area known as the “lower city.” Different researchers’ descriptions of the building’s exact location coincide: Koyunluoğlu points to the site of the current garden; Abdülkadir, to the area in front of the pond in today’s Municipal Garden; Gökbilgin, directly to the site where the Municipal Office is located; and Ayverdi, to the garden at the corner of the street. These descriptions indicate that the structure was located at the corner of the street between today’s Orhan Mosque and the City Hall.

The founding owner, Orhan Gazi, had this second madrasa built with the aim of expanding the city eastward and creating a new center. While the inner city—that is, the upper city, filled with monumental structures inherited from the Byzantines—largely retained the status of a sacred area, the lower city, which also housed the madrasa, was conceived as the new center of social and economic life. With the construction of these socio-cultural complex buildings and caravanserais, the lower city functioned much like a Hellenistic agora or Roman forum, becoming the heart of commercial and judicial activities.

The madrasa remained well-maintained and standing until 1313/1895. No official records regarding the structure have been found from the period after this date. Due to this documentary gap, some historical sources make no mention of the madrasa at all. Since no information has survived to the present day regarding which professors served at the institution, it is assessed that the madrasa did not rise above an average level in terms of its academic standards.