In 1878 the Austro-Hungarian Empire occupied Bosnia and Herzegovina and in 40 years had an immense influence in future urban planning and architecture. Stylistically, Bosnia was to be assimilated into the European mainstream (hence the use of historicist architectural styles), save for the appearance of the Orientalist style.

Confronted with the multinational population structure in Bosnia and Herzegovina, the government realized that it was necessary to have a political ear when choosing one of the historical styles. For construction in areas where the Bosniak population was predominant, architects used the Moorish Revival style. The aim was to promote Bosnian national identity while avoiding its association with either the Ottoman Empire or the growing pan-Slavic movement by creating an "Islamic architecture of European fantasy".^[1]

This style drew its inspiration from the Moorish and Mudéjar architecture of Spain as well as Mamluk architecture of Egypt and Syria, as exemplified by Mostar Gymnasium. This included application of ornamentations and other "Moorish" design strategies, neither of which had much to do with prior architectural direction of indigenous Bosnian architecture. As a reaction, architects influenced by the Art Nouveau movement later developed the Bosnian style in architecture.