Bab-i Hayat's building was constructed in the 17th Century as part of the Yeni Cami (New Mosque) complex. The exact history isn't known, but the ground level is said to have been used as a stable and the upper level as a hostel. Another story tells us that Bab-i Hayat's space was used as a local court for merchants. We know for sure that up till 1978 it was used as a municipal tax collection office. From that time forward, this space was used as a warehouse.

In January 2006 renovation began on Bab-i Hayat. The project, which took over a year to complete, was carried out by the team of professionals who had previously renovated Topkapi Palace. This space has now been converted into a magnificent boutique restaurant where the hand-painted ceilings, richly tiled walls and decorative touches reflect old Istanbul.