Divan-begi is a title that designated the post right after khan in the Bukhara khanate. Nadir Divan-begi held this position during the reign of Imam Quli-khan (1611-1642), the strongest khan of the Ashtarkhanid (Janid) dynasty (established in 1599). The entrance portal has depictions of 2 phoenix birds, 2 misshapen white deer and a "man-in-the-sun" face.

The Nadir Divan-Beghi Madrasah was initially erected as a caravanserai. At the inauguration ceremony, Imam Quli Khan unexpectedly proclaimed the supposed caravanserai is to be a madrasah. So Nadir Divan-Beghi was obliged to rearrange the caravanserai by adding on to the front the loggias, the portal (Aywan) and angular towers. He also constructed an additional storey with cells.