Today, the significance of social capital is frequently emphasized in carrying out effective public reforms and creating strong social structures based on solid institutions. It gained value within the framework of good governance only at the end of the 20th century in Western administrative literature. However, considering the works of Ibn Khaldun and the practices in the Ahi unions, it is clear that social capital was effectively used to establish social order and good governance in the Seljuk and Ottoman periods. In this context, this study analyzes the formation of social capital in Ahi unions, one of the primary institutions in preserving the social structure during and after the transition to settled life in the Ottoman Empire, and its impact on today’s social and administrative practices. The study first explains the concept of social capital and then examines different types of social capital. Afterward, it discusses the impact of social capital on establishing good governance from a historical perspective. The study concludes that institutions with a long past, which left indelible traces in social, cultural, economic, and administrative issues even today, owe their strength to their social capital capacity.