The history of Kolašin dates back to the middle of the 17th century. The city was founded by the Ottoman Turks approximately in 1651–1652 as a fortified military outpost. Initially, it was a fortress built to control strategically important paths through the mountain ranges and protect trade routes from raids by local tribes.
The transformation of a military fortress into a full-fledged settlement was due to its successful geographical location on the banks of the Tara River, surrounded by the high mountain ranges of Bjelasica and Sinjajevina. Natural protection, access to water, and a location at an altitude of 954 meters above sea level made this place ideal for an observation post. In addition, a busy caravan route passed through Kolašin, connecting Istanbul and the internal regions of the Balkans with the Adriatic coast.
In the first centuries, life in the settlement was focused around the garrison, and the economy was based on serving military needs. A major turning point was 1878, when, following the Congress of Berlin, the city officially became part of Montenegro. This event gave impetus to a change in the cultural landscape: the active development of traditional crafts, mountain farming, and architecture in the national style began.