During the mid-19th century, the emerging Jewish bourgeoisie in Izmir sought to establish a new residential area away from the traditional Jewish quarters. This led to the founding of Karatas district, situated along the southern coast and hills of the bay. As the population grew in this area, the existing synagogues became inadequate to meet the community's needs.

To address this, an application was made to Sultan Abdulhamid II to construct a new and larger synagogue. The construction of Bet Israel Synagogue commenced on March 15, 1905, following the Sultan's decree, and it was opened for prayer in 1907. However, due to economic difficulties, the internal decoration of the synagogue was delayed, and it was not completed until 1950.

Bet Israel Synagogue stands as a grand and ceremonial masterpiece, distinct from the conventional Izmir style in its architectural design and seating arrangement. Unlike the central plan typically seen in Izmir synagogues, Bet Israel features a double Tevah arrangement from its inception. The placement of the Ehal, housing the Torah scrolls, deviates from the eastern wall and is instead positioned along the southern wall, influenced by the plot's location.

Originally intended to have a large dome, economic constraints led to the construction of a smaller central dome. The intricate woodwork of Bet Israel Synagogue, reminiscent of Italian synagogues, was crafted using mahogany by skilled Italian artisans.

Bet Israel Synagogue is a two-storey structure, with the ground floor designated for men's prayer and the upper floor serving as the women's section. Presently, the upper floor accommodates a small exhibition hall showcasing religious artifacts, documents, and photographs.