The church, located on the eastern outskirts of Kirzhach, at the cemetery, was built in 1846 in the style of late classicism. It was constructed from brick on a lime mortar. The founder of the church is considered to be Kalmykov, the owner of a brick factory in the village of Korytovo. The temple is a two-light square with a rotunda, a small refectory, and a three-tiered bell tower with a spire. It attracts with its simplicity and sanctity, and one can feel the spirit of antiquity and ancestors within it. The first mention of the church dates back to 1562, when a settlement with a wooden church of St. Nicholas the Wonderworker, built from the monastery, appeared at the graveyard beyond the swamp. In 1662, there were the household of priest Evtikhiy with his son, the household of the sexton, 19 cells for the poor, and the household of servant Ivan Sheshkov.

In 1735, the priest of the Nikolsky graveyard requested to move the church to the sub-monastery settlement of Kirzhach Monastery, citing danger from thieves. In 1736, an order was given to relocate the temple closer to the city, but for unknown reasons, the church remained in its original location. In 1846, instead of the wooden church, the existing stone temple was built with three altars: a cold one in honor of St. Nicholas the Wonderworker and warm ones in honor of St. Sergius of Radonezh and St. George the Great Martyr.

After 1917, the rector of the Nikolsky church became deacon Vasily Evgenyevich Molchanov from the Annunciation Cathedral of Kirzhach. On June 14, 1934, the presidium of the Ivanovo regional executive committee approved a resolution to cease the ringing of bells in the cemetery church of Kirzhach. On September 2, 1937, priest Vasily Molchanov was arrested on false charges of participating in a counter-revolutionary group and anti-Soviet agitation. After his arrest, the church in Zabolotye was closed.

In 1946, the church was reopened, and since then, regular services have been held there. In the 1950s, it was the only functioning church in Kirzhach and its surroundings. During holidays, so many people came to the church that they could not fit inside. It was then decided to dismantle one altar in the winter part, and the altar in honor of St. George the Victorious was taken apart.