Perhaps the best preserved of all Cappadocian caravanserais is Karatayhan built by Celaleddin Karatay on the old Kayseri-Malatya road, part of the main trade route into Syria. Construction commenced during the reign of Alaaddin Keykubat and was completed during of his son Giyaseddin Keyhusrev in 1240/1241.

  The endowment deed of Karatayhan tells us that it was built to serve both commercial and social functions. The ornately carved portal which dominates the south wall measures 46 by 80 metres, and projects both beyond and above the wall. The decoration includes floriate and figurative as well as geometric motives which distinguishes it from other Caravanserais. Along the eastern side of the courtyardt are a series of long narrow chambers with pointed vaults opening directly onto the courtyard, while an arcade runs down the western side.