Commissioned in 1395 CE by Sultan Sikandar Butshikan, it was built in honor of the Persian Sufi saint Mir Sayyid Ali Hamadani, who played a pivotal role in the spread of Islam in Kashmir during the 14th century . 

The Khanqah is an exemplary model of Kashmiri wooden architecture, showcasing intricate carvings and vibrant papier-mâché decorations. The two-storied structure features sloping pyramidal roofs and is adorned with ornate wooden balconies and eaves. Its design reflects a harmonious blend of Islamic, Buddhist, and Hindu architectural influences, embodying the syncretic cultural ethos of Kashmir . 

Over the centuries, the Khanqah has faced multiple devastations due to fires, notably in 1480 and 1731. Each time, it was meticulously rebuilt, preserving its spiritual and architectural essence. The most recent fire occurred in November 2017, damaging the spire, which was subsequently restored by March 2018 

Beyond its architectural grandeur, the Khanqah serves as a vital center for Sufi practices and Islamic learning in Kashmir. It stands as a symbol of the region's rich spiritual heritage and continues to attract devotees and tourists alike, offering a glimpse into the profound legacy of Shah-i-Hamdan and the enduring traditions of Kashmiri Sufism. 

For visitors interested in exploring the spiritual and cultural tapestry of Kashmir, the Khanqah Shah-i-Hamdan remains a must-visit landmark, reflecting centuries of history, devotion, and artistic excellence.