The Bazaar of Panakhl is located at the western end of the Grand Bazaar of Kashan. Despite being located in the center of the city, The Bazaar of Panakhl does not have a proper social and economic situation. Subsequently, with the destruction of the urban area around the Bazaar, The Bazaar of Panakhl was separated from the surrounding urban context. As a result, The Bazaar of Panakhl became an isolated one with limited economic activities. Therefore, this Bazaar has lost its role and position in the historic city, but it has also gone through a long period of economic stagnation and deterioration due to isolation. This article seeks to answer two basic questions; What are the most important features of The Bazaar of Panakhl? And what damages have been done to this Bazaar? To answer these questions, it is necessary to identify both the values and the damages or problems of The Bazaar of Panakhl, and for this purpose, it is first necessary to document and study the area of this Bazaar. The interpretive-historical method of research has been done through field studies. Documentation, study and pathology show that this part of the Bazaar has lost its position for reasons such as the construction of Baba Afzal Street and the developments in the surrounding neighborhoods have led to its separation from the urban context. Nevertheless, this Bazaar still retains its social status and role in urban rituals.