The grotto was designed by architect Osip Ivanovich Bove (1784-1834) during his work on the Kremlin gardens, which were named Alexandrovsky in 1856.

The grotto became the main attraction of the Upper Alexandrovsky Garden, opened in 1821. In early September 1820, the Commission for Buildings, created to restore the city after the fire during the Patriotic War of 1812, reviewed Bove's project for the construction of the grotto. According to the project, the grotto was to be located by the Kremlin wall between the Resurrection and Trinity bridges. The Commission approved the project, but with the condition that the work be completed within a month. On October 18 of the same year, Bove informed the Commission that the construction was completed. The grotto was built from state materials, and the workers and tools were provided by the Podolsk merchant Vasily Streltzov.

Bove placed the grotto near the Middle Arsenal Tower of the Kremlin opposite the Manege. The grotto is an arch with an entablature supported by four Doric columns with fluted shafts. The strict forms of the columns contrast with the jumble of stones and debris from buildings destroyed during the war and fire. The grotto is a vivid example of the Empire style: the strict composition is complemented by decor featuring images of military armor, the so-called armature, inscribed in the metopes of the frieze.

According to a guidebook to Moscow from 1831, in the garden "in the very middle towards the wall side, an earthen elevation is made in the form of a natural mountain. On it, there is a tastefully made pavilion (where regimental music usually plays on Sundays), and in the very mountain, a beautiful grotto is made in the form of ruins; on the sides of the grotto, various fragments of pedestals, columns, etc. are visible, mixed with huge stone cannonballs that were used in ancient times instead of cast iron ones."

During the restoration in 1958-1959, two lion figures were installed on the upper platform of the grotto.