Karakhan mausoleum was built over a grave of one of the representatives of Karakhan dynasty. Mahmoud Karakhan Shah was known as the leader and the Saint. His mausoleum was named Mausoleum of the Saint, from 1836 to 1936, local community called Taraz as Auliyeata in the honor of Karakhan. Satuk Bogra Khan (915–955) was considered to be the founder of Karakhan dynasty. Having adopted Islam and drawn upon the support of Samanid, Satuk Bogra Khan won and crushed insurrection of Ogulshak Khan and conquered Taraz and Kashgar. In 942, he unseated the governor of Balasagun and declared himself the Supreme Kagan. Since that time the history of Karakhan state began.
There are many legends about Aisha-Bibi and about the history of creation of this most sought-after architectural construction. One of them is about devotion and love between the beauty Aisha, daughter of the rich notable person and brave soldier Karakhan. Her feelings were so deep that she went against her parents and went away to be with her beloved one in joy of victories and bitterness of defeat. At the Assa River banks Aisha died of snake's bite which crept in her wedding dress. Shocked Karakhan brought Aisha to the mullah where they got married, and then Aisha made the last breath in Karakhan’s hands. Then he ordered to erect the mausoleum on the grave of his beloved. Today there are beautiful roses planted around the mausoleum. Beautiful pink bushes form a flower triangle, representing a beautiful and eternal love. Near the grave Aisha-Bibi Karakhan constructed his own mausoleum.
According to the different legend, the Saint Karakhan was very wise and powerful Khan. Despite his infinite wealth, he led a simple life. However Karakhan couldn't get on with the wife. Only his wife with nasty character did not obey him. Once, his servant asked, “How your wife can resist you when the whole world worships you?” Then Karakhan answered, “I thank God for it. If the whole world bowed to me, I would be won by the devil and became arrogant. By looking at my wife, I feel that I am the one of the poorest slaves of God”. The original version of this legend was written in the book Gold Silsilla.
The tribes of Karakhan khaganate included Kandzhu, Karluk, Khalil, Dzhakma, and Tyurkhesh.
Karakhan dynasty consisted of karluk. Karluk introduced Islam to the Kazakh steppes. In Balasagun, the capital of Karakhan, there were many mosques. Karakhan state was crushed by Chinese.