Stefan was born around 1340 in Ustyug to the family of a cleric named Simeon. When his mother Maria was three years old, Saint Procopius predicted the birth of a holy son. Influenced by his pious mother and thanks to his abilities, Stefan showed zeal in serving the Church from an early age: within a year he learned to read and helped his father in the church, performing the duties of a canonarch and reader.

In his youth, Stefan took monastic vows at the monastery of Saint Gregory the Theologian in Rostov, known for its rich collection of books. Wanting to read the holy fathers in the original, he studied the Greek language. While assisting his father in the church, Stefan often interacted with the Zyryans and, mastering the church culture, sought to convert them to Christ.

To enlighten the Zyryans, Stefan created an alphabet for their language and translated several church books. He used Zyryan currency symbols carved on sticks (pasy) to create the alphabet. The Rostov bishop Arsenius ordained him as a hierodeacon. Preparing for missionary work, Stefan went to Moscow in 1379 to see Bishop Gerasim, who governed the metropolis, and asked for a blessing for his mission in Perm. The bishop blessed him and ordained him as a hieromonk, providing him with antimins, holy chrism, and liturgical books. Grand Duke Dmitry Ivanovich issued him protective letters.

From Ustyug, Stefan traveled along the Northern Dvina to the settlements of the Zyryans, where he was met with hostility. However, his meekness and fearlessness disarmed the Zyryans, and they asked him to preach. Stefan endured many hardships living among pagans who worshiped idols and natural elements.

The Zyryans especially revered the "sacrificial birch," to which they brought offerings. Stefan built his cell next to the tree and used the gatherings of pagans for preaching. He then cut down and burned the birch, which angered the Zyryans. However, Stefan addressed them with a speech, explaining the powerlessness of their gods and the greatness of the Christian God. On the site of the birch, he built a church in honor of Archangel Michael.

The baptized Zyryans began to destroy their idols and bring gifts to Stefan, who ordered them to be burned, leaving only cloth for wrapping feet. A turning point among the Zyryans occurred after a dispute between Stefan and the priest Pam, who tried to prove the power of his gods. Pam suggested passing through fire and water but became frightened and refused. Stefan did not punish him but continued to preach. In gratitude for his victory over the priest, Stefan built a church in honor of Saint Nicholas.

In 1383, Stefan was appointed by Metropolitan Pimen as the Bishop of Perm. He cared for his flock, opened schools at churches, translated sacred books into the Permian language, and built churches. During times of famine, he supplied the Zyryans with bread, protected them from violence, and interceded for them in Moscow. Thanks to his efforts, the Permian land converted to Christianity.

In 1390, while traveling to Moscow, Stefan mentally greeted Sergius of Radonezh, who responded to him from a distance. This spiritual connection is reflected in the prayer to them at the brotherly meal.

Stefan founded several monasteries for the Zyryans and wrote several icons, including the "Zyryan Trinity." In 1395, he went to Moscow again and passed away there on April 26, 1396.