In the 1840s, a merchant from Khvalynsk named Kuranov built a water mill and laid out an orchard in the upper reaches of the Cheremshan River. Later, this place was acquired by the Astrakhan merchant Arkhip Dmitrievich Vyokhov to establish a monastery there. In the 1860s, a men's hermitage appeared above the pond, which soon became a monastery.

The monastery was founded by the elder Father Serapion, known in the Old Believer community. His library housed Old Believer books and manuscripts, some of which were written on bark and boards. With the support of merchants, the monastery quickly developed and became a major landholding and trading center. It owned lands on the Cheremshan and Volga rivers, apple orchards, gardens, workshops, an icon-painting, book, and binding workshop, a beehive, and water mills. A church operated at the monastery.

By the end of the 19th and the beginning of the 20th century, the Cheremshan monasteries became the center of the Russian schism. Diocesan councils of Old Believers from the Saratov-Astrakhan diocese were often held here. They were attended not only by clergy, archbishops, and bishops but also by representatives of the authorities, including the adjutant of Count Sheremetev, who represented the Tsar in 1905. Schismatic bishops settled in Cheremshan, and all directives for the Volga Old Believers came from here, as well as the ordination of clergy for neighboring areas. Thus, a strong center for managing the Volga schism was established here.

Over time, the men's monastery became impoverished. In 1908, about 50 monks lived there, mostly elders. Many of them wore heavy birches and hair shirts. The birches were made by blacksmiths from the village of Podlesnoye.

After the death of Father Serapion, the monastery was led by Father Theodosius and Father Panteleimon, and then again by Father Theodosius until its closure in the autumn of 1918.

On the territory of Cheremshan, monastery buildings have been preserved: the former church, now a dining room, and a two-story brick building with monastic cells. Of particular interest is the "Cave of the Monk," built in the late 19th century for solitary living. It is located on the opposite slope of the ridge that limits the Cheremshan gorge. The cave consisted of two rooms, one intended for prayer and rest, and the other for household needs. In our time, the second room has been destroyed, and the first is almost completely filled with clay. The last monk to live in the cave was Seraphim, known as a good healer.

On the eve of the October Revolution, in addition to the men's monastery, there were four women's communities in Cheremshan. The last of them built housing on the territory of the modern sanatorium in 1913-1914. During the Civil War, white officers hid in the monastery, which caused discontent among the new authorities, and in the autumn of 1918, the men's monastery ceased to exist.