In the late 15th and early 16th centuries, a significant number of Jews began to establish permanent settlements in Dubrovnik. This influx was a result of the expulsion of Jews from Spain and Portugal, who were seeking a new homeland. The growing Jewish population and immigration prompted the Dubrovnik authorities to consider how to accommodate them within the city. In 1538, a decision was made to allow Jews to settle within the city walls, resulting in the establishment of the Dubrovnik Jewish ghetto.
The term "ghetto", as per its definition, refers to a confined district or section of a city where minority groups, particularly Jews, were segregated. These groups were confined to ghettos in order to centralize their residence and enable easier control by the majority population.