The tekke was founded in September 1650 with funding provided by Gazi Deli Hüseyin Pasha on behalf of the Bektashi sheikh Khorasani-zade Mevlana Dervish Ali Dede. Khorasani-zade was the leader of the approximately forty Bektashi dervishes who took part in the campaign. According to the endowment deed, Hüseyin Pasha dedicated the village of Voni to ensure the maintenance of the tekke.

The tekke was among the largest and wealthiest in Crete. About eighty Bektashi dervishes lived there, offering hospitality to visitors and providing communal meals to rich and poor alike.

Khorasani-zade Mevlana Dervish Ali Dede died in 1671 and was buried in a türbe (mausoleum) in the garden of the tekke. The mausoleum survives today as part of a private residence.

According to a document dated 1710, the tekke had fallen into decline, but in 1711 it was restored by Mehmed, son of Khorasani-zade. After a second period of abandonment, it was restored again in 1811 by Dervish Ali Baba. At that time, the buildings of the tekke were rebuilt, a fountain was constructed on its eastern side, and a mosque—still preserved today—was erected. In the years that followed, two additional fountains were built and an enclosing wall was added around the monastic complex. The tekke remained in operation until 1923–24.

The mosque is a stone-built structure with a four-pitched tiled roof. Above the main entrance, an Arabic inscription bears a verse from the Qur’an: “Serve your Lord until there comes to you the Hour that is certain.” The calligraphy was executed by Dervish Ali Baba, the founder of the mosque. The mihrab is set within a rectangular frame and decorated with polychrome floral motifs.

The mosque of the tekke was restored in 1991 by the Municipality of Heraklion and has been granted for use to the Alatsata Association.