A research-development system, first established in Topkapı Palace in the 1450s, and then was revived in Hereke in 1843, has resulted in the foundation of Hereke Imperial Factory which produced the most valuable carpets and silk textiles of the world.Since the opening Hereke Imperial Factory had seen great interest by the dignitaries visiting the Ottoman Empire. German Emperor Wilhelm II, Sultan Abdulhamid’s friend and ally, was intrested in Hereke carpets especially after he has witnessed the unique 406 sqm in Yildiz Chalet Palace. It is known as the world largest Hereke carpet made in the non rectangular format of the Ceremony Hall. After he visited Sultan in Istanbul, Kaiser Wilhelm went to Hereke on October 20th in 1898. The Emperor and the Empress launched in a beautifully decorated kiosk built specially for his visit near by the factory. Scientists and chemists accompanied the Emperor with barrels of high thecnologie dyes and they experimented them on threads, silk textiles and carpets. Many carpets and silk textiles are presented to Kaiser, with this occasion, the tradition of using the Imperial Hereke carpets in the European palaces has begun. Hereke Factory could hardly respond to the following high demand by other European Palaces as well as the White House.The Hereke Imperial Factory has managed to survive overcoming numerous obstacles it encountered, over such a long period of time from the opening in 1843 to present, Moreover, it has continued to develop through the republican era and continued the quest towards it’s goal.The Factory continues to operate as a “Museum Factory” under the management of TBMM (Grand National Assembly of Turkey) Administration of National Palaces.