In 1878, local photographers Engel and Raev laid the first stone at the site of Lermontov's death. Three years later, a modest obelisk was erected by the order of the contractor of the Caucasian Mineral Waters A.M. Baikov.

From 1881 to 1914, the appearance of the monument and the inscriptions on it changed multiple times. At the end of the 19th century, the monument read "Mikhail Yurievich Lermontov. July 15, 1841," while in the early 20th century, it stated, "Here Mikhail Yurievich Lermontov perished in a duel. July 15, 1841. 1901."

The final version of the monument was created in 1914 for the 100th anniversary of the poet's birth. Local authorities allocated funds for its construction. The project was developed by sculptor B.M. Mikeshin, who also worked on the Lermontov monument at the Cavalry School in St. Petersburg. The monument was completed in 1915.

The opening of the monument was quiet due to military actions, and the country was not in the mood for celebrations. The final version did not satisfy B.M. Mikeshin, particularly the fence. Despite his protests, the monument remained in its original form.

The monument is designed in a classic pyramidal shape. In the center is a bronze bust of the poet in a round niche, beneath which the years of his life are indicated. The monument is surrounded by a square fence made of heavy metal chains.

In the 1950s and 60s, Pyatigorsk actively expanded, and the area where the monument is located became part of the city.

Every year on July 15, poetic readings take place at the site of the poet's death. The monument is one of the most visited places associated with Lermontov.