In 1867, Bishop Gerasim of Samara and Stavropol visited Bugulma and consecrated a wooden house church there. By 1877, a women's community had formed at this site, which did not yet have official status. The following year, Bishop Gerasim informed the Holy Synod about a request from a peasant woman from the village of Mikhailovka, Justina Matyushkina, to establish a women's community in Bugulma with a school for girls. She provided her house with buildings and 300 desyatins of land for the community. Merchant Ivan Grigoryevich Stakheev donated 31,000 rubles, and the city council allocated 3,600 square fathoms of land for the construction of the monastery.

The Holy Synod found no obstacles to the establishment of the community but set the condition that it should not collect money to strengthen its resources and should not ask for help from the treasury or the Synod. The Chief Prosecutor was tasked with obtaining permission from the emperor, which was done. Emperor Alexander II approved the establishment of the women's community with a school on February 3, 1879.

On May 10, 1889, the community was transformed into a dormitory monastery, and its first builder was Abbess Ustinia. The nuns had economic buildings and planted the first fruit orchard in the city. Near the village of Spasskoye, the monastery owned 520 desyatins of land, where they grew grains. A free school operated at the monastery, taught by Priest Serdobov and a handicrafts teacher. The school was managed by Abbess Euphalia, and the education was funded by local societies and donations.

The monastery quickly gained fame for its activities. In 1894, for the coronation of Nicholas II, Abbess Euphalia and Priest Afanasy Bogoroditsky were awarded pectoral crosses. The main street of the city is named after the monastery, and part of it still bears the name Kazanskaya.

Currently, the remaining buildings of the monastery are managed by Bugulma Detention Center No. 3. Believers first visited the Kazan-Bogoroditsky Church on August 28, 2012, where the service was led by Bishop Mephodiy of Almetyevsk and Bugulma. The building of the former school was transferred to the Almetyevsk Diocese, where a house church and administrative offices are planned to be located. In the future, it is planned to transfer the entire complex of buildings to the diocese after the construction of new buildings for the detention center is completed.

On September 21, 2014, a divine liturgy was held in the Church of the Kazan Icon of the Mother of God for the first time in 70 years, led by Bishop Mephodiy.