The name of the town refers to a 17th-century Turkmen family. In 1691 the Ottoman government tried to settle the nomads. The nomads struggled to continue their traditional lifestyle. Although the government punished them by exiling to Rakka Eyalet they were able to return. But at the end of continuous struggles, towards the end of the 18th century, three families gave up and agreed to settle where they were assigned to. It was designated as a town on November 29, 1989. In 1990, Karayılan was declared a seat of township.