Previously, the site where the church now stands was a large swamp known as "luzhishche," from which the name "Zaluzhye" originated. The Sergiev gates were once called Luzhskie. There is no exact data on the construction of the Sergius church.

Most likely, the church was built after Pskov lost its independence in 1510, as before that, Moscow saints were not particularly venerated here. It is possible that it was erected by relocated Muscovites on the site of Pskov residents exiled to Moscow.

Some architectural details prompted researcher Grabar to attribute the church to the 14th century. However, there are two important points: the veneration of Sergius began only in the 15th century, and the chronicles indicate that in 1561 the church burned down in a fire.

Thus, the modern appearance of the Sergius church was acquired no earlier than the second half of the 16th century. Previously, there was a male monastery here, which in 1710 became a dependency of the Lyubyatovsky monastery. In the early 19th century, the church was assigned to the Novo-Voznesenskaya, and later transferred to the Sergius Real School. The last restoration was carried out in 1885-1886.

On the southern side of the church is an altar in honor of the venerable Nikandr, built in 1785 by merchant Ivan Yakovlevich Postnikov. The church stands on a basement, the entrance to which is located to the left of the porch. At the entrance, traces of the ornament that covered part of the basement walls are visible. The basements are deep and vaulted. On the northern wall of the temple is an elegant Pskov bell tower with two spans for bells. A damaged gravestone from 1624 is embedded in the western wall of the porch.

After the revolution, the church was closed. Before the war, it stood out among other temples with its ornate dome covered with green tiles and a multicolored frieze of tiles. During the fascist occupation of Pskov, the church suffered greatly and collapsed.

In the 1970s, during restoration, a cache was found in the wall containing a wooden box with 56 ancient manuscripts from the 16th-17th centuries. These finds allow dating the construction of the church to the 1580s, when the Sergius monastery was moved to the city fortifications due to the approaching troops of Stefan Batory.

On December 26, 2011, the Government of the Russian Federation approved a plan of activities for the 700th anniversary of Sergius of Radonezh, including the church. On April 24, 2014, Rosimushchestvo transferred the church for gratuitous use to the local religious organization.

In January 2015, restoration work began based on the project of architect V. Nikitin, approved in July 2014. On August 25, Metropolitan Eusebius consecrated the crosses. The first service took place on the evening of October 7, and on October 8, a water blessing service with a procession was held.

The roof of the four-pitched structure was recreated, the historical covering of the dome, ceramic tiles, a two-span bell tower, and the altar of the venerable Nikandr the Desert Dweller were restored.