"Katra" is a Persian word that means caravanserai or roadside inn. Multiple katras were constructed during Mughal and Nawabi eras in Dhaka. Of them, Bara Katra and Chhoto Katra are mentionable.

According to historians, Bara Katra was constructed in 1643-1644 CE/ 1053 AH by Abul Qashim who was ordered by the then subadar (Mughal provincial governor) prince Shah Shuja. Shuja constructed it for his official residence. However, the Mughal prince did not like the palace and donated it to Abul Qashim who converted it into a caravanserai. The palace was endowed for charitable purposes in 1645-46 CE/ 1055 AH.

Bara Katra was located in between the Buriganga River and Chawk Bazaar. The river used to flow along the southern side of the palace even three centuries after its construction. The flow of the river was diverted due to the construction of an embankment to protect Dhaka from annual flooding. Later, human settlements mushroomed along the embankment and all around the palace. At present, the Bara Katra is located at Bara Katra Lane in Ward number 30 of Dhaka South City Corporation.

Bara Katra is an ideal depiction of the Mughal architectural style. The two-stoey building was erected around an open rectangular courtyard. The palace overlooks the Buriganga River. There were two gates on the southern and northern corners of the palace and two small gateways on the western and eastern sides.