It is considered to be one of the oldest mosques in Skopje. It is not known who its founder is, but it is associated with the name Paša Yigit Bey, the conqueror of Skopje, and its rise is located in the 15th century. The name Arasta was given to nicely decorated bazaars where only certain types of products were sold. Hence, it is considered that this mosque was named after the eponymous bazaar that existed within the Old Skopje Bazaar. It is known that the mosque was rebuilt in the 18th century, but was completely destroyed during the 1963 earthquake. In 2010 it was completely renovated by the Islamic Religious Community, despite opposition from the National Conservation Center of Macedonia.