Shusha or Shushi is a city in Azerbaijan, in the region of Nagorno-Karabakh. Situated at an altitude of 1,400–1,800 metres in the Karabakh mountains, the city was a mountain resort in the Soviet era. Most sources date Shusha's establishment to the 1750s by Panah Ali Khan, founder of the Karabakh Khanate, coinciding with the foundation of the fortress of Shusha. Some attribute this to an alliance between Panah Ali Khan and Melik Shahnazar, the local Armenian prince of Varanda.