According to tradition, it is built on the site of the Byzantine church of Taxiarchis Michael, from which probably come two marble small piers of iconostasis, dated back to the 13th century, built into the niche (mihrab). The mosque was probably built after 1611 and was named "Fethiye", which means conquest. It took its final and current form in 1795 to serve the religious needs of Ali's saray.

It consists of a central domed hall, an external open air gallery and the minaret in the northwest corner. Inside the mosque, a narrow wooden balcony traverses the north side while on the south wall there is the niche of the mihrab, decorated with stuccowork and writings. Murals depicting flowers and fruits in combination with geometric patterns and Arabic inscriptions adorn the dome and the walls. A second phase of dome decoration includes columns and large hoops with influences from the spirit of "neoclassicism" that prevailed in the city of Ioannina during the 19th century. An exhibition on the era of the city of Ioannina on Ali Pasha's times (1788-1822) is hosted in the mosque.

It operates as a branch of the Byzantine Museum of Ioannina.