In the 16th century, the majority of Sarajevo's population engaged in craftsmanship and trade. New crafts were developed, foreign merchants arrived for trade, and Sarajevo, along with its marketplace (čaršija), became a crossroads of trade routes. Caravans brought diverse goods from the East and the West, including English wool, Venetian velvet, Arabian coffee, and silk from Bursa. From Bosnia, they exported honey, wool, meat, cheese, wheat, and particularly prized leather. At that time, Sarajevo's marketplace had over 10,000 craft and trade shops. In the marketplaces of larger cities, bezistans were constructed, and in Sarajevo, there were even three. Bezistans were what would be considered shopping centers today. Built of stone with barrel vaults, occasionally domes, these bezistans housed rows of shops initially selling only cloth, later expanding to include other luxurious items. Presently, there are two bezistans in Sarajevo, Gazi Husrev-bey's and Brusa Bezistan.

Built at the end of the 19th century, the City Hall (Vijećnica) is one of the most recognizable symbols of Sarajevo. The pseudo-Moorish style, representing a unique architectural blend of East and West, reaches its zenith in the City Hall building. Indeed, observing its horseshoe arches, arabesques, decorations, and colors, one feels the spirit of the Orient, evoking tales from One Thousand and One Nights. Besides this almost romantic perception of the City Hall, one senses its different significance. As a war victim, it was heavily shelled in 1992 along with the cultural heritage it safeguarded. It waited for restoration for over 20 years, yet even in such a devastated state, its presence was strong. Today, the City Hall once again opens its doors and, besides being a symbol of cultural confluence, has become a symbol of resistance and the rebuilding of Sarajevo.

With the end of Ottoman rule and the beginning of Austro-Hungarian governance came significant changes. Guilds of traders and craftsmen developed and became increasingly influential. Those who possessed a craft were said to have "golden hands," while those unable to earn a living and support their families were said to have "neither tool nor trade." Recognizing the significance of Sarajevo's craftsmen and traders, French consul Pierre Daville in the early 19th century concluded that Sarajevo was an "artisan republic." Indeed, crucial decisions made in Sarajevo required approval from the "marketplace" (čaršija) and guilds. One of the most significant was the furrier's guild. Furriers were craftsmen who made clothing items from fur. The term derived from the word "ćurak," meaning fur coat. This craft involved not only sewing but also preparing the fur, from soaking and tanning to dyeing. They made short fur coats (ćurčići), fur-lined coats (ćurdije), women's fur coats, and fur hats from the pelts of wild animals. The fur coat was the most expensive garment and unmarried girls did not wear it. However, as soon as women got married, they would acquire a fur coat because "what kind of woman is she without a fur coat and fur-lined coat."

With the arrival of the Ottomans in these regions, cities developed under the influence of the Orient. The heart of the city was the marketplace (čaršija) surrounded by neighborhoods known as mahalas, urban quarters. The čaršija was where work, trade, learning, and prayers took place, while the mahalas were where people lived. Each mahala had at its core a place of worship, a fountain, a bakery, a grocery store, all serving the needs of around forty to fifty individual residential houses. During that time, a person was the measure of everything – the city was built according to their needs and in human proportions. Although they might appear dense at first glance, the streets and houses followed the terrain's morphology, allowing everyone the right to a view. Houses were built "without order," nestled against each other, yet all were harmoniously integrated with some "neighborhood" logic and interconnected by a network of streets and passages. It was almost impossible to wander down a street without ending up at the marketplace. These were low-rise houses, one to two stories high, with almost identical roofs and doors, eaves overhanging the streets, while the courtyard walls jealously guarded the life unfolding within. There were no construction standards, yet the construction happened harmoniously. Neighborhood camaraderie was highly significant. A neighbor's privacy was respected, so windows faced the street, the city, or the courtyard, but never towards the neighbor's courtyard. The importance of neighborhood unity is evident in the story of a homeowner selling a house and valuing it at three hundred ducats. When asked why it was so expensive, he replied: "The house is worth a hundred ducats, the right neighbor a hundred, and the left the same – a total of three hundred ducats." Even today, we can wander through Sarajevo's mahalas, perhaps even encounter a neighbor valued as much as a house, and feel the charm of neighborhood unity.

In the year 1839, the Tanzimat reforms commenced in the Ottoman Empire. These reforms aimed to transform the old Empire into a modern state. Proclaimed greater religious freedoms for all resulted in changes in the public sphere, highlighting the multi-religious and multicultural character of society. Although it was on the periphery of the empire, the positive effects of Tanzimat were gradually felt in Bosnia. Until then, the Ottoman Empire had allowed the existence of various religious communities within its borders, but their visibility was limited. The restoration of old and construction of new places of worship were strictly controlled. However, Tanzimat reforms allowed other religious communities not only to restore but also to expand and build new churches and synagogues, larger and more affluent ones. Such opportunities encouraged cultural development, which slowly began to change the image of Sarajevo. In this surge of religious freedoms, construction of the Cathedral Church in Sarajevo began in the second half of the 19th century.