Sayid Islam Khodja was vizier (Prime Minister) of Khiva khan Isfandiyarhan II. He paid special attention to city improvement. He contributed to construction of hospitals, postal offices and telegraphs, as well as iron bridges in Khorezm.
He constructed madrasah and minaret near ensemble of Pakhlavan Mahmud in 1908-1910. Hudaybergan Hadji was in charge of construction of the spiritual-educational establishment. Poet Niyozi wrote special rhymes, which can be read at marble plate over the entrance to madrasah.
There are 42 hudjras (living rooms) in madrasah, which designed for 50 students. The front part of madrasah has two floors. Its architecture and external decoration adhere to traditional styles for Khiva. Here one can see the beautiful samples of glazed tiles. As in any other Eastern madrasahs it has own mosque. It is the largest room of the building. The madrasah was constructed as the large domed room. The visitors can enjoy the majolica patterns and ornaments of carved ganch.
A line of two-storey arches are located on the sides from the portal. They enclosed with guldasta towers in the corners. There is also internal yard, surrounded with modest one-floor cells for students and aivan (terrace).
The exposition “Fine are of Khorezm” was created in madrasah in 1983 in connection with the 1,200th anniversary of Al-Khorezm. About 387 exhibits demonstrate the finest masterpieces of wood carving, exquisite copper coinage, jewelry arts and fabrics.