The history of the Savior Church begins in 1447. In the second half of the 17th century, the Spassky-Gorodishchensky gates were rebuilt and transformed into the Savior Church in honor of the icon 'Savior Not Made by Hands', painted in 1445 and placed above the gates. However, a more likely year for the creation of the icon is considered to be 1447, as noted by A.N. Nepogodyev. The church burned down in the fire of 1698 and was not restored.

In 1821-1822, after the fire, the southern part of the episcopal chambers opposite the Alexeyevskaya Church was rebuilt into a two-story, single-domed church, Vsegorodskaya of the All-Merciful Savior. It was built with the funds of the townspeople and named in honor of the icon of the Savior Not Made by Hands from 1447, thanks to a donation from the merchant widow Maria Yurinskaya. The church was consecrated on May 27, 1823. After the fire of 1698, the icon 'Savior Not Made by Hands' was kept for a long time in the warm Varlaam Church, and later in the Resurrection Chapel of the Ascension Cathedral. After the reconstruction, the icon was transferred to the new church, where the upper floor was initially used, while the lower served for household needs.

In 1822, the main single-tier iconostasis was created. Deacon Pyatnitskaya Church Khokhlov updated and painted new icons. Two icons of the Image of Christ deserve special attention. The first was painted by Hieromonk Serapion in 1447. The icon's cover, made in St. Petersburg in 1842 with the funds of merchant Ilya Gribanov, is made of silver with gilding and adorned with rhinestones. On the back of the icon, there is an inscription about its creation and a promise from the citizens to pray to the Savior. The second icon was painted in 1651, as indicated on it, and has an ancient gilded cover with stones and pearls. According to tradition, this icon was located in the Savior Church above the Gorodishch gates. In 1874, merchant Vasily Dmitrievich Vlasov installed a new carved iconostasis in the church, covered with red gold, costing 1150 rubles.

In 1919, the building of the Savior Church was transferred to the fire society, later converted into a club of the House of Peasants. In 1941, the premises were used as a hospital.