The fate of the Assumption Church in Knyaginino turned out to be the most fortunate. Like many other churches, it was originally wooden, but by 1886 it had become severely dilapidated. The widow of merchant Alexander Ivanovich Dunaev took on the responsibility of its restoration.

In 1872, due to the building's decay and the small number of parishioners, which totaled only 325, it was planned to merge the church with the Epiphany Cathedral. This decision upset Dunaev and the parishioners who were accustomed to their small church.

The merchant promised to build a stone church and even prepared bricks for this purpose, but his sudden death prevented him from fulfilling his promise. His wife laid the foundation and successfully completed the construction of the stone Assumption Church, as her husband had bequeathed.

The church was built to last for centuries from bricks bound with a mixture made from chicken eggs. Soviet workers, who tried to dismantle the church, confirmed its strength; it resisted destruction. A unique photograph of the moment the bell tower of the Assumption Church exploded is preserved in the local history museum. A resident of Knyaginino, Sergey Semyonovich Matveev, who was still a boy at the time, witnessed this event, as the museum director Vyacheslav Maslennikov recounted. It is unknown who took the photograph, but it managed to capture the moment when the stones hung in the air before falling.

After the dome and bell tower were destroyed, the church building was used as a club, gym, and supply store. It remained in this capacity until recently. In the early 90s, restoration of the church began, and in 1993 it was reopened; the dome was restored in 1996, and the bell tower in 1997.

Today, the Assumption Cathedral is the main church of the city, where services are regularly held and church holidays are celebrated.

On January 17, 2010, Archbishop Georgy of Nizhny Novgorod and Arzamas visited Knyaginino for the first time. On this day, he, along with the clergy of the Nizhny Novgorod Diocese, conducted the Divine Liturgy in the Assumption Cathedral.