It is located in the courtyard of the Rock to the northwest of the Dome of the Rock, located in the heart of Al-Aqsa Mosque, separated by the two domes of the Prophet and the Mi'raj.

It was established during the Ottoman era in the year 1112 AH / 1700 AD, and it was known as a Sufi Sheikh who used to lead it and worship in it. .

The dome is a square building built on four corners, topped with a shallow dome in the Ottoman style, and in its four facades are eight rectangular windows. On the eastern facade of the building is a small door surmounted by an inscription bearing the name and date of the building.

Inside this dome on the qibla side is a mihrab of royal limestone with a shallow stone apse, and under the building of the Dome of al-Khalili there is a lower building called the Cave or Cave of Spirits, which is accessed through a cut stone staircase. It is made of rock, and this cave is poorly ventilated and devoid of light. It is not used.