In 1887, a solemn ceremony of laying the foundation took place on the embankment, and in 1890, the new church in honor of the Assumption of the Blessed Virgin Mary was consecrated. The church, designed and built by Moscow architect M. N. Chichagov, was in the Greco-Byzantine style. The temple was truly magnificent: its walls were adorned with carvings on white stone, and the interior featured multicolored Italian marble. The altar images on glass and the external cross were skillfully illuminated by electricity.

The Holy Assumption Cathedral in Gurzuf represented a classic cross-domed church of Byzantine style. This was emphasized by the Byzantine dome on the drum with arched windows. The bell tower did not have a dome but was decorated with a pediment and two arched windows. The interior finishing required high craftsmanship from the builders, using Italian marble and carvings on it. For the service in the new cathedral, hieromonk Trifon was invited, who during the construction was the priest of the Protection Church in Lower Oreanda. Pyotr Ionovich Gubonin, the initiator and financier of the construction, insisted on creating a family crypt in the church, hoping for a long life for his dynasty in Gurzuf and providing for twelve places.

Contemporaries noted that the new Orthodox church blended beautifully into the landscape and immediately became one of the attractions of the Southern coast. A parish school for the children of the service staff was opened at the church. Pyotr Ionovich Gubonin, who died on September 30, 1894, in Moscow, bequeathed to be buried in Gurzuf. On October 16, 1894, at the Church of the Assumption of the Virgin Mary, Father John of Kronstadt served the Divine Liturgy and a requiem for Gubonin, who was buried in the altar crypt of the church.

The Church of the Assumption of the Virgin Mary met a sad fate. In 1935, it was dismantled, and a medical building for a military sanatorium was built in its place, making it impossible to restore the church at its former location. Believers were allocated a furniture store building, and later services were held in a former clinic. However, parishioners sought to revive the destroyed shrine and achieved the allocation of a plot for a new church.

The history of the construction of the new cathedral began in 2004, and on July 2, 2007, the newly built Holy Assumption Cathedral was consecrated in Gurzuf. The consecration was conducted by Metropolitan Lazar of Crimea and Simferopol and Archbishop Georgy of Nizhny Novgorod and Arzamas, assisted by Archpriest Adam and other priests. The new church, both solemn and cozy, became a decoration of Gurzuf.

It is important to note that the old building of the Holy Assumption Cathedral was not located where the current one is. The church built by Gubonin stood on the site of the current medical building of the Gurzuf sanatorium. There is a belief that the spirit of the benefactor of Gurzuf still roams at night through the military sanatorium.