The building that houses the museum was built as an imarethane in 1388 in memory of Nilüfer Hatun, the mother of the Ottoman Sultan Murat I. It is regarded as one of the most beautiful examples of 14th-century Ottoman architecture. It was built with an inverted "T" plan, which is a rare example in Ottoman architecture. The building was constructed with three rows of brick and one row of stone and has a rich and colourful stone and brick workmanship. The building begins with a portico covered with domes and vaults supported by columns and pillars. The main section is entered through a door with an inscription and covered by a dome with a lantern in the centre. The main section leads to the side rooms which are covered with a dome. During the Republican period, Nilüfer Hatun Imaret was utilised for various storage and storage-related purposes. Following a restoration process that commenced in 1960, the museum was opened for public viewing in the same year. The museum displays a diverse range of artefacts spanning from prehistoric to Ottoman periods, as well as items unearthed from Ilıpınar, the Roman Theatre and Iznik tile kilns. The museum garden displays a variety of artefacts from different historical periods, including Greek, Roman, Byzantine and Ottoman column capitals, sarcophagi, reliefs, ambones, steles, inscriptions, gargoyles and Islamic tombstones.