This is the place where the Turkish military leader Ali Pasha Čengić built the fortified town of Kolašin in 1651. It was a strategic location, at the crossroads of important roads of the time, from which the entire region could be controlled. At the end of the 19th century, this settlement began to transform. 

The city's wealthy merchants wanted to stand out from the rest of the population and began to build houses modeled after European capitals. The way the taverns in the old town functioned is interesting and probably unique. They were often located across from each other, so they had an agreement that one would serve brandy and the other coffee, so that at the end of the day they would share the profits. Even today, Kolašin is known for its cafes. They say that it is the city with the most cafes per capita in the former Yugoslavia and that there is one cafe chair for every resident of Kolašin.