According to a rumours, sultan Bayezid II was having a walk in the forest after he had hunting party. Bayezid sees a little cabin in the middle of beautiful garden. He wanted to meet with Gül Baba (Father of Roses) who was famous dervish and poet at that time and owner of the beautiful garden. sultan Bayezid II asked him, if he had any wishes. Gül Baba requested a külliye which is a complex of communal facilities surrounding a mosque to be build. His wish was accepted and the külliye was built in 1481. The tomb of Gül Baba still resides in the gardens of Galatasaray lycee.
Galatasaray Hamamı was used by only the students of Galatasaray at the beginning, and when the palace lost its education feature, it started to serve to public in 1834. Its centric location has made the bath most touristic one in the city however it became famous of its management which has anti -transsexual stance. LGBT activists protested Galatasaray Hamamı after a transsexual woman had been blocked to enter the bath. The manager of the bath finally asked pardon after LGBT activists' protesting.