The first mention of the Assumption Church in Pavshinskaya Sloboda is found in a decree from Tsar Mikhail Fyodorovich, issued in 1624 to the Tula siege head Ivan Vasilyevich Zybin. In the document, it is referred to as "the temple of the Assumption of the Blessed Virgin Mary and St. Nicholas the Miracle Worker beyond the fortress against the Florov gates." At that time, the church was wooden. From the decree, it can be concluded that the Assumption Church was built in the first quarter of the 17th century on the site of the abolished Annunciation Church, which was located further from the fortress. In 1720, parishioners and clergy appealed to Metropolitan Joanniky of Kolomna and Kashira with a request to build a stone church to replace the dilapidated wooden one. The church-building decree provided for the construction of "round domes, scaly, round altars according to the newly issued authoritative pattern." The construction of the new church was completed in 1733. On the iconostasis, which stood at the northern doors of the altar, there was an inscription stating that the church was built in 1733 with the support of Tula resident Gerasim Avksentiev Pastukhov. Icon painter Semyon Faleev Kaluzhenin and his apprentice participated in its decoration. The Pastukhov merchants were known as generous parishioners of the church. Over time, the stone Assumption Church became dilapidated and required expansion. Reconstruction was planned in 1790 but began only in 1808 due to a lack of funds. The work was completed by 1812, and the church received an iron roof and a new refectory with two chapels. This was financed by the Sushkin merchants: Nikolai Osipovich, Ivan Petrovich, Foka Nikitich, and his son Nikita.

In 1814 and 1816, a bell tower was built with the funds of parishioners under the supervision of Yevdokim Vasilyevich Brovkin. The bell tower had seven bells, the largest of which, weighing 218 poods, was cast in 1859 at the N. I. Chernikov factory. A stone chapel was also built in 1810 and a charitable institution in 1845 with the funds of I. D. Sushkin. In 1863, there were 12 people living in the charitable institution. I. D. Sushkin spent significant amounts on creating iconostases and acquiring icons for the church. In 1876, two more chapels were added, consecrated in October. The funds for this were donated by Pyotr Ivanovich Sushkin. P. I. Malitsky noted that thanks to the efforts of the Sushkin brothers, the church was richly decorated, especially the vestments on the main altar made of silver with gilding.

In 1915, new iconostases were installed in the chapels, funded by Alexander Vasilyevich Pugovkin. The old iconostases were transferred to the church of the village of Novospasskoye. Pugovkin also purchased icons and silver covers, and maintained the church choir. Since 1887, a church school operated at the temple.

The alley leading to the church was called the Assumption Alley, but in 1923 it was renamed Pavshinsky. The church was closed in the 1930s. In 1961, the building of the former church housed the Tula Automobile Service Station. In 1991, the building was recognized as a monument of history and culture of regional significance. It is now managed by OAO "Managing Company of the City of Tula" and is used for housing its subdivisions.