Prizren is constitutionally designated as the historical capital of the country. Archaeological excavations in Prizren Fortress indicate that its fortress area has seen habitation and use since the Bronze Age. Prizren has been traditionally identified with the settlement of Theranda in Roman Dardania, although other locations have been suggested in recent research. In late antiquity it was part of the defensive fortification system in western Dardania and the fort was reconstructed in the era of eastern Roman Emperor Justinian. Byzantine rule in the region ended definitively in 1219-20 as the Serbian Nemanji? dynasty took control of the fort and the town. Prizren served as the capital of the Serbian Empire under the reign of Stefan Dušan, as it bloomed to become an important center of trade and commerce during Dušan’s reign. From 1371, a series of regional feudal rulers came to control Prizren, that includes Mrnjav?evi?, Balši? and the Brankovi? dynasty. Ottomans captured Prizren from Serbian Despotate in 1455 and would almost immediately serve as the capital of Sanjak of Prizren in the Ottoman Empire. While standing as an important administrative city for the Ottomans, Prizren would also become an important political center for Albanians during the late 19th century.
Prizren is often recognized for its predominantly Islamic influence, with approximately 96% of the population identifying as Muslim (2011 census). Mosques, such as the Sinan Pasha Mosque, are a dominant feature in the town.
For a long time the economy of Kosovo was based on the retail industry fueled by remittance income coming from a large number of immigrant communities in Western Europe. Private enterprise, mostly small business, is slowly emerging. Private businesses, like elsewhere in Kosovo, predominantly face difficulties because of a lack of structural capacity to grow. Education is poor, financial institutions basic, and regulatory institutions lack experience. Securing capital investment from foreign entities cannot emerge in such an environment. Due to financial hardships, several companies and factories have closed and others are reducing personnel. This general economic downturn contributes directly to the growing rate of unemployment and poverty, making the economic viability in the region more tenuous. Many restaurants, private retail stores, and service-related businesses operate out of small shops. Larger grocery and department stores have recently opened. In town, there are eight sizeable markets, including three produce markets, one car market, one cattle market, and three personal hygiene and houseware markets. There is an abundance of kiosks selling small goods. However, reducing international presence and repatriation of refugees and internally displaced persons is expected to further strain the local economy. Market saturation, high unemployment, and a reduction of financial remittances from abroad are negative economic indicators. There are three agricultural co-operatives in three villages. Most livestock breeding and agricultural production are private, informal, and small-scale. There are nine operational banks with branches in Prizren, ProCredit Bank, the Raiffeisen Bank, the NLB Bank, TEB Bank, Banka për Biznes (Bank for Business), ??bank, Banka Kombëtare Tregtare (National Trade Bank), Iutecredit, and the Payment and Banking Authority of Kosovo (BPK).
The annual Dokufest International Film Festival held in Prizren is considered among the largest publicly attended film festival in the Balkans. Several art and music festivals and conferences are held in the city, including the 40BunarFest and NGOM Fest, with the main objectives to promote artists and to connect the different ethnic groups in the surrounding region.
