The mosque was built in 1494 and finished in 1496 by Iljaz Hoxha (also known as Iljaz Bey Mirahori), who was a veteran of the Istanbul Conquest and the city-founder of Korçë. According to the writer Sami Frashëri, it was built on the foundations of an existing monastery, then called dedicated to Saint Paraskevi "(Kisha e Shën e Premtes)". With its minaret being torn down during the Communist dictatorship, the Iliaz Mirahor mosque was declared a religious Cultural Monument of Albania. After the end of Communist rule in the 1990s, the minaret was not rebuild until 2014 in a slightly different style compared to the original one. The Ottoman Clock Tower of Korçë in front of the mosque has also been rebuilt afterwards.