Nadir Divanbegi Madrasah is the first construction of the whole Lyabi-Hauz ensemble. This is a massive rectangular structure with cruciform hall under the dome and hudjras in the corners. Nadir Divanbegi ordered to construct caravanserai on its other side. At the opening of caravanserai, Imamkulikhan complimented his minister on construction of the building “for the glory of Allah” by advice of Sufi sheikhs. So after that saying, Nadir Divanbegi had to convert this caravanserai into the madrasah.
Nowadays interesting folk concerts of Bukhara masters and defile of modern clothing made of natural materials is organized here inside of the madrasah for tourists and the guests of the city.