In the late 17th century, the area near the Serpukhov Gates began to be actively settled by craftsmen and merchants, which created the need for a separate church for the new residents. In 1696, on land donated by the Danilov Monastery, a wooden church was built in the name of the Ascension of the Lord. However, it soon became clear that it could not accommodate everyone, and in 1708 permission was granted to construct a large stone church in the Baroque style. The builder was Tsarevich Alexei Petrovich.

Construction progressed successfully, and in 1714 the lower church in honor of the Jerusalem Icon of the Mother of God was consecrated, with two chapels: the Nine Martyrs of Kizik and St. Alexius, Man of God, in honor of Tsarevich Alexei. The upper Ascension church was built up to half of the windows. However, that same year, work was halted due to a decree prohibiting stone construction outside of St. Petersburg. In 1716, Tsarevich Alexei fled to Vienna and became an opponent of Peter I, and in 1718 he was returned to Russia, sentenced to death, and died in the Peter and Paul Fortress.

These events halted construction, and parishioners temporarily covered the erected part with a wooden roof. Only in 1762 was the church consecrated in a form that, with changes, has survived to this day.

It is believed that the architect was Domenico Trezzini, known for the Peter and Paul Cathedral in St. Petersburg. The names of Ivan Michurin and Dmitry Ukhtomsky are also mentioned as those who completed the church. The main upper church on a wide platform is designed in the shape of a cross with an octagon and one complex dome in the center, in the Baroque style. The facades are adorned with large windows, round windows, and pilasters, while the lower tier is almost devoid of decoration. In 1839, a refectory was added, and in 1842, a four-tiered bell tower with a spire was built over the western entrance.

Worship continued until 1929, after which the church was closed and demolition was planned. However, only the bell tower and the fence were dismantled, while the remaining part was used as a cold storage warehouse. The church lost its dome with a drum, and the lower tier was rebuilt. Later, it housed a dormitory, offices, and a computing center of one of the ministries, and the interiors were lost. Restoration began in 1991 along with the resumption of worship. Old frescoes were discovered under the plaster, and the Jerusalem Icon of the Mother of God was returned from the Danilov Monastery. Today, the church has regained its early 20th-century appearance, with the dome, bell tower, and interiors restored. Nearby, a children's shelter with a chapel in honor of the New Martyrs and Confessors of Russia was built, and a chapel in honor of the Equal-to-the-Apostles Princess Olga was erected a little further away.