There are two versions regarding the time of the cemetery's appearance behind the Bazaar Square. According to local historian L.A. Banakin, the first burials here occurred as a result of battles with Polish invaders in 1609-1612, when the deceased were buried near parish churches. Another version suggests that the cemetery emerged after the epidemic of 1771. Until 1800, there was a wooden chapel at the cemetery, and then, with donations, a stone church in the classical style was built, consecrated in honor of the Bogolyubskaya Icon of the Mother of God. Soon after, a stone fence with a bell tower was erected nearby. The church was affiliated with the cathedral, and services were conducted by the cathedral clergy. Wealthy individuals, nuns, and priests were buried at the cemetery of the Assumption Monastery, while ordinary people were buried at the Bogolyubsk cemetery. Over time, beautiful monuments appeared here, becoming works of art. This place was often visited by Marina Tsvetaeva, who mentioned it in one of her poems.

In 1895, in the "Historical and Statistical Description of Churches," V.G. Dobronravov wrote that 5860 rubles had been deposited in the church's account, from which interest was received for the commemoration of the deceased. In 1829, merchants Mikhail Kalenov and Fyodor Baranov built chapels in honor of St. Theodore Stratilates and St. Barbara. The fence was adorned with decorative latticework featuring five towers and gates. The church had three altars: in honor of the Bogolyubskaya Icon, St. Theodore Stratilates, and St. Barbara. The church was sufficiently equipped with utensils and books, but did not have a separate clergy.

From 1908, the church's elder was Nikolai Pervushin, who was awarded a medal for diligence. In 1922, a special commission confiscated church valuables, leaving 24 items in the temple. In 1929, the authorities closed the Christ the Savior Cathedral, leaving the Bogolyubsk church open, but soon services were also banned there. In April 1929, the church was registered as Renovationist, and was headed by Alexiy Rozhdestvensky. In 1934, the bells were removed for industrial needs, and in 1936, the bell tower was dismantled. In 1937, arrests of clergy and active parishioners began, many of whom were executed. In 1939, the church was closed, and services ceased.

In 1941, a new cemetery was opened, but burials continued at the old one for those who died in hospitals. In the post-war years, believers tried to achieve the reopening of the church, but unsuccessfully. In 1946, the Trinity Cathedral of the Assumption Monastery was handed over to the believers. In the 1990s, the church was transferred to the Vladimir Diocese, restoration began, and in 1998 a new bell tower was built. Services resumed, and various priests led the church.