The video shows driver Metin Kandemir occasionally getting off his seat to dance the "horon," a traditional group dance from the Black Sea region, while the passengers in the moving vehicle groove to the song amid shouts and cheers.
At one point one of the passengers joins the overly enthusiastic driver to the fast-paced dance as the minibus thunders along the highway in the Sultanbeyli district on the European side of the city.
When he returns to his seat, Kandemir lets go of the steering wheel, flailing his arms everywhere, wildly wiggling and belting out a song with a grin on his face.
The video, shot by one of the passengers, became an instant hit on social media and prompted the Turkish police to take action.
The driver was briefly taken into custody and had his driving licence revoked. He was also fined 160 Turkish liras ($80 or 55 euros).
Kandemir, who appears to be in his early 30s, said he had been a minibus driver for 10 years and apologised for the dance.
"It was a mistake. I apologise to everyone. I will not repeat it. The road was empty at the time. This is the first time I did it," Kandemir was quoted as saying by Dogan news agency.
Dogan said he has been fined on more than 32 counts of traffic offences including reckless driving.
Istanbul's chaotic and traffic-clogged roads are notorious for the sometimes dangerous and eccentric behaviour of drivers.
An Istanbul bus driver was sacked in July after video footage showed him immersed in a book while travelling at high speed on a busy street in the Turkish metropolis.
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