The wooden church of Saint Nicholas was originally built in the village of Nikolsk, located in the Tugnuysk intermountain valley on the border of Buryatia and the Transbaikal region. This area became a new home for thousands of family Old Believers, relocated from the Polish-Lithuanian Commonwealth in the 18th century. They were resettled as entire families, hence the name "family."

The church, erected in 1884, is a beautiful example of folk wooden church architecture, a tradition that the family Old Believers preserved since the time their ancestors lived in their ancestral territory. The church is built from logs, joined "in lap," and the main parts of the building consist of 23 logs. From the veranda and narthex through the refectory to the prayer room, the building gradually expands. The five-walled apse, the protruding part, is lower than the prayer hall. The bell tower is located above the refectory and topped with an octagonal dome, just like the main room. The octagon in the refectory and church space is set on a square base. The church stands on a rubble foundation, has a massive double-leaf entrance door, and two Dutch stoves.

Like many Old Believer churches, in the 1930s, the church in the village of Nikolsk was closed and used as a warehouse. In 1971, it was dismantled, transported to the Ethnographic Museum of the Peoples of Transbaikalia, and reassembled. Major restoration work was completed by 1977. In 1998, the iconostasis became accessible to visitors. By 2008, the iconostasis contained 32 icons, of which 23 were authentic, while the others were selected by theme and size. The Festive Order and several icons of church holidays dedicated to the Incarnation of Jesus Christ have been completely lost. After restoration, an authentic icon of the "Last Supper" from the Festive Order was found in the village of Nikolsk. The empty spaces are covered with toned wooden panels. In 1981, two icons were stolen.

Today, the church is part of the museum exhibition, but on particularly solemn days, services are held by the clergy of the Russian Orthodox Old Believer Church.