The Alexander-Kushtsky Monastery was founded around 1420 by monk Alexander from the Spaso-Kamenno Monastery on the banks of the Kusta River, near Lake Kubenskoe. Alexander built the Church of the Assumption of the Blessed Virgin Mary. Prince Dmitry Vasilyevich, who owned the Zaozerskaya estate, supported the monastery by granting charters for several villages. Boyar Vasily donated the village of Kolyabino. After the prince's death, his wife Maria continued to donate icons and the altar Gospel to the monastery.

On June 9, 1439, at the age of 68, the venerable Alexander peacefully passed away and was buried in his monastery. A year later, a rowan tree grew over his grave. On the feast of the Assumption of the Blessed Virgin Mary, many pilgrims visited the monastery. Once, a boy named Matfey broke a branch of the rowan tree, and his hand swelled. His parents, realizing the cause, brought him to the saint's grave, and by their prayers, the boy was healed. Since then, many have found relief from ailments by gathering rowan berries.

The relics of Alexander of Kusht were buried in the chapel named after him, with a copper reliquary above them. The ancient life of Saint Alexander records numerous miracles, especially related to the healing of mental illnesses. In the church built according to the will of the abbot, many saw Saint Alexander along with Saint Nicholas, praying and censing the church. The service to the saint was composed around 1575.

In 1519, the monastery burned down but was restored with two churches, the Assumption and St. Nicholas the Wonderworker. In 1764, the monastery was abolished, and in 1833 it was restored and attached to the Spaso-Kamenno Monastery.

By the early 20th century, the monastery had two churches: a wooden one in honor of the Assumption of the Blessed Virgin Mary and a two-story one, the upper dedicated to Alexander of Kusht, and the lower to Saint Nicholas the Wonderworker, where the relics of the venerable Alexander rested.

The Assumption Church was built shortly after the fire of 1519. The wooden tent-like Church of the Assumption of the Blessed Virgin Mary is one of the oldest in Russia. The cross-shaped log structure of the church is topped with an octagonal roof under a tent with a dome and surrounded by a gallery on consoles. In the 1960s, the church was moved to the Spaso-Prilutski Monastery and is no longer used for services.

The carved gilded iconostasis from the Assumption Church, with icons by Vologda masters of the 16th-18th centuries, has been preserved and is now located in the Vologda Regional Local History Museum.