The Transfiguration Church was consecrated in 1836. Until the 17th century, the village of Melichnoye belonged to the Shuysky princes, and in the 19th century it became the estate of the Decembrist N.V. Shimanovsky. Today it is located within the city limits.

The church attracts attention with its location, decoration, and history. The complex, which includes the church, a watchman's lodge, and a small cemetery, is situated on a picturesque hillside surrounded by the rivers Sekha and Motoviliha. In the 17th century, there were mills here, which gave the village its name. Despite the low hill, the church is visible from the northern approaches to Shuya and the roads from Ivanovo, Dunilovo, and Vvedeniye. All significant events in the church life of Shuya after the war are associated with the church in Melichnoye. The church was closed in the 1930s but reopened in the 1940s. During the closure, the building was used as a workshop and storage. From the late 1940s to the early 1990s, it was the only functioning church in Shuya. Services were only held continuously in the church of the village of Kuznetsovo. Lost church valuables were partially replaced by donations from the residents of Shuya, who brought family icons and books. The architecture of the church combines late classicism and pseudo-Russian style, built in several stages by Shuya merchants. First, a warm stone church of St. Apostle James was added to the wooden Nikolskaya church, then the wooden church was replaced with a stone one, and in the warm part, a chapel of the Transfiguration was arranged. Construction progressed from west to east. The name of the church changed depending on the dominant altar: it was first the Transfiguration Church, then the Nikolskaya, and now again the Transfiguration, according to the inscription on the northern wall and diocesan documents. Until the reopening of the Resurrection Cathedral in the late 1990s, the Transfiguration Church was the cathedral. No documentary evidence of its origin has survived. Local historian V. Borisov suggested that the church appeared during the time of Ivan the Terrible. There is a version that it was a household church at the country estate of the Shuysky princes. Interesting descriptions of tombstones of unknown princesses with partially erased inscriptions were found in the church cemetery in the 19th century. Among the information about the church, underground passages are mentioned: "In the village of Melichnoye near Shuya lived the Shuysky princes, where there are still collapses, they say about an underground passage under the river Tezoya to Shuya." 19th-century local historians mentioned the ancient miraculous icon of St. Nicholas the Wonderworker, which was located in the mill church among the church attractions of Shuya. Guests of the city were recommended to visit Melichnoye to venerate the icon. One of the known miracles was the salvation of the village from Polish-Lithuanian devastation in the early 17th century. Legends about miracles were presumably lost in a fire in 1780. A miraculous spring, known since ancient times, flows just a few steps from the church. In 1904, it was mentioned in the register of drinking waters of Vladimir province. A tradition has survived about the appearance of the icon of St. Nicholas the Wonderworker here, and since then the place has been called the spring of St. Nicholas. Numerous cases of miraculous healings testify to the sanctity of the spring. The church itself was dedicated to St. Nicholas.