The idea to build a new church arose after the visit of Bishop Evlampiy of Vologda and Veliky Ustyug to Usty-Sysolsk in 1848. He noted that in the capital of the Zyryan region, Saint Stephen of Perm, who was canonized back in 1549, was not sufficiently honored. Inspired by his words, the city authorities approached the governor in 1850 with a proposal to construct a new church, as the local residents had long desired this.

Interestingly, the local clergy, led by Archpriest Bonifaty Koksharov, opposed the construction. They believed that three churches were enough for a small town and that building a new one was a risky venture due to the poverty of the townspeople. The archpriest suggested restoring the existing churches. However, the church authorities did not take their arguments into account and passed the decision to the city community. The city authorities, led by merchant I. Novoselov, received permission to build in 1852. Ironically, the chairman of the construction commission became Archpriest Koksharov.

Construction began in 1856. The main bricklaying work was carried out by experienced masons from Veliky Ustyug and Solvychegodsk under the guidance of N. Cherepanov, a merchant from Solvychegodsk, with the help of local residents (up to 50 people). In three years, the walls and the ceiling of the first floor were erected, but then work was halted due to a lack of funds. In 1868, construction resumed. Only in 1881 was the construction of the St. Stephen's Church completed in rough form, and the following year, the interior of the lower church was finished, and on November 24, 1882, one chapel was consecrated in honor of the icon of the Mother of God.

In 1896, during a large gathering of people, the upper church with the altar of Saint Stephen of Perm was consecrated. A huge three-tiered iconostasis was installed in the church, three large icons were brought as gifts from St. Isaac's Cathedral in St. Petersburg, and others were ordered from Sergiev Posad. In 1894, the construction of the bell tower began with donations of ten thousand rubles from an unknown benefactor, and in 1897, its construction was completed.

After the revolution, in 1923-1924, the cathedral was closed. It was reopened in 1927 and functioned until 1929, but in 1932 it was completely destroyed. The cathedral was the largest church in the Komi region, measuring 47 meters in length, 26 meters in width, and 45 meters in height.