The Old Believer community existed in Sarapul since the early 19th century. In the early 20th century, when the community had significantly grown, it was decided to build a spacious church in honor of St. Nicholas the Wonderworker. After obtaining official permission and completing the necessary documents, construction of the church began in 1911 with funds from parishioners and Sarapul merchants. The construction was led by road engineer Nikolai Ivanovich Maximov from the Sarapul district of the Vyatka province. The church was built from red fired bricks in the pseudo-Russian architectural style with funds from the local Nikolskaya community of Old Believers and was officially called the Nikolayevskaya Old Believer Church. By 1912, the church was completed and featured a five-domed structure with a small refectory and bell tower.

However, in the late 1930s, the Nikolayevskaya church, like many other churches in the Udmurt ASSR, was closed. This was not due to the authorities' arbitrariness, but because of the declining number of parishioners: by 1937, only 31 people remained in the community, and by 1940, just four. Services in the church ceased in 1938. On July 13, 1940, by decree of the Presidium of the Supreme Soviet of the UASSR, the church was closed as there were no willing participants to use it for religious needs. The building, which required serious repairs, was planned to be converted into a cultural and educational institution, possibly a cinema. However, due to a lack of funds for major repairs, the building was handed over to a military unit for use as a food storage facility.

The restoration of the parish community at the former Nikolayevskaya church began in 1989. On April 3, 1991, the building was transferred to the community of the Russian Orthodox Church. A year later, the church was consecrated in the name of Blessed Xenia of Petersburg by Bishop Palladium of Izhevsk and Udmurtia.