In medieval times the city was under Byzantine and Bulgarian rule. When it was captured by Serbians, it became the seat of the Serbian Orthodox Church in 1346. The Patriarchal monastery of Pe? is a UNESCOWorld Heritage Site as part of the Medieval Monuments in Kosovo. Under Ottoman rule the city, then commonly known under the Turkish name ?pek, became a district capital with mosques and civil architecture. From the end of the nineteenth century until today, the city has been the site of nationalist aspirations and claims for both ethnic Albanians and Serbs, often resulting in tense inter-ethnic relations and conflict.
According to the 2011 census, the city of Peja has 48,962 inhabitants, while the municipality has 96,450 inhabitants. The municipality covers an area of 602 km² (232 sq mi), including the city of Peja and 95 villages; it is divided into 28 territorial communities.
Peja is rapidly developing a significant tourist infrastructure. Information for the “Trail of Cultural Monuments” can be found at the Tourist Information Office as well as maps and attractions in the Rugova Canyon and surrounding mountains.
Skiing is available at the ski center in Bogë nearby. One of the most exciting new attractions is the Peak of the Balkans trail. The trail wanders through 3 countries with mountain views and can be supported by local guides and tour companies. Banja of Peja is a township located in the municipality of Istog, Kosovo. To many people it is known with the name Ilixhe. It is a touristic-health center with services in Istog and in the region, highly developed infrastructure and every service needed for healthy living. The cite has seen a bloom of tourism with a new Zip Line, and two Via Ferrata, built between 2013 and 2016. In the city there are a number of tour operators that function, with Balkan Natural Adventure, being the main one with a full palette of services.
