The first church in Palauza, according to the petition of local peasants to Archbishop Simon of Vologda and Belozersk, as well as documents from the chronicle of the Church of the Nativity of the Blessed Virgin Mary, was built between 1664 and 1670.

The wooden church dedicated to the Vladimir Mother of God stood in Palauza until 1672, after which it was dismantled due to its dilapidated state. In its place, a wooden single-altar church was built in honor of the Nativity of the Blessed Virgin Mary. This was a small parish church (measuring 15.5×5.3 m) with a bell tower of the square type on an octagonal base, standing 10.5 m tall. In 1850, due to the dilapidation of the wooden church, with the blessing of Bishop Evlampiy of Vologda, the construction of a new single-story church with three altars and a cold temple in honor of the Nativity of the Blessed Virgin Mary began, which was consecrated on June 17, 1879. In the western part of the church, two chapels were arranged: on the right, in honor of St. Basil the Great (consecrated on October 7, 1863), and on the left, in honor of Thomas of Amphipolis (consecrated on July 18, 1870).

The Church of the Mother of God is located in the eastern part of the village of Palauza on an elevation 450 m south of the highway. It is a single-story, three-part rectangular building with a semi-circular apse. The central dome of the temple rests on a cylindrical light drum with elongated rectangular windows, while the side domes are on blind drums. All domes have an onion shape.

The northern and southern facades of the church have three axes of openings. The central axis with an arched portal (the portal on the northern facade is false) and a window of the second light is enclosed in a high three-lobed niche with a keel-shaped finish. The windows of the second light are round. The corners of the church are decorated with pilasters under rustication. At the top of the church, there is a frieze of strips and a simple cornice. The apse, refectory, and lower tier of the bell tower have the same height. The altar is covered with a conch and connected to the main volume through a supporting arch. The church is covered with an eight-section vault on trompes. The floor made of massive boards has been preserved in the central part of the church. The church is separated from the refectory by a wall with an arched opening. On the eastern wall of the refectory, on both sides of the arched opening, there are exedras that served as altar niches. In the northern part of the western wall of the refectory, there is an arched niche where a Dutch stove was located. The vault of the vestibule is cross-shaped. In the northern wall of the vestibule, a narrow opening leads to a brick staircase to the bell tower, and nearby a deep arched opening leads to the northern utility tent. The southern tent connects to both the refectory and the vestibule. The vault in the tent is cross-shaped.

The church building is made of brick and plastered both outside and inside. The masonry is of a standard type. This building has social, historical, and artistic significance and is distinguished by its expressive decor in the Russian style.