According to legend, the apostle Andrew the First-Called, spreading Christianity, headed North, preaching the Gospel. After passing through the Dnieper and Volkhov, he reached the "stormy and swirling waters of Lake Nevo" and erected a stone cross on the "Valaam mountains." One version of the monastery's origin states that 900 years later, two monks, Sergius and Herman, came "from the eastern lands" and founded a monastic brotherhood on one of the islands. Written sources about the lives and deeds of these saints have been lost. Another version dates the foundation of the monastery to the 10th-11th centuries, referring to the life of St. Abraham of Rostov and chronicle mentions of the transfer of the relics of Sergius and Herman to Novgorod in 1163.

The documented history of the Valaam Monastery begins in the 14th century. The life of Savvatiy of Solovki mentions the Valaam Monastery, and in the "Tale of the Valaam Monastery," the year of its foundation is given as 1407.

By the beginning of the 16th century, about 600 monks lived on the archipelago, but Swedish attacks led to the desolation of the island.

In the 18th century, Peter I began the struggle for access to the Baltic Sea. In 1702, the fortress of Noteburg was captured, and in 1703, the fortress of Nienshants. In 1710, the Russian army took Vyborg, and the Saint Petersburg province was created.

In 1713, after the Finnish campaign, Russian troops occupied Helsingfors and Abo. In 1715, Peter I issued a decree to restore the Valaam monastery. In 1719, the wooden Spaso-Preobrazhensky church was consecrated, and cell buildings were constructed.

In 1721, by signing the Treaty of Nystad, Sweden recognized the annexation of Ingria and part of Karelia to Russia.

By 1730, the Assumption Church was built, but a fire in 1754 destroyed the buildings. Empress Elizabeth Petrovna attempted to restore the monastery, but by 1765, only 11 monks lived there.

In 1774, the Church of the Transfiguration of the Lord was consecrated. Abbot Nazarius, who headed the monastery in 1781, began stone construction. In 1805, the gate church was erected, and in the 19th century, a bell was cast in honor of the apostle Andrew the First-Called.

In 1811, the Valaam archipelago became part of the Grand Duchy of Finland. In 1819, the monastery was visited by Alexander I.

The greatest rise of the monastery occurred in the 19th century. In 1839, Father Damaskin became the abbot, who ensured that construction was carried out under the guidance of qualified architects. He established a strict regime for the brotherhood. After his death, the abbot became Jonah II, who built a new Spaso-Preobrazhensky Cathedral.

By the beginning of World War I, about 1000 people lived on the island.

After the October Revolution, Valaam became part of Finland and experienced discrimination. The Finnish authorities demanded that Archbishop Seraphim Lukyanov learn Finnish, but he was deported. In 1923, the monastery switched to the new calendar, which caused disagreements among the brotherhood.

In 1930, the monastery housed 300 members of the brotherhood and 100 workers. The monks lived frugally but fed poor pilgrims for free.

During the Soviet-Finnish War, the monastery found itself in a combat zone. The monks supported refugees from Eastern Karelia and donated funds for their support.

In 1940, evacuation from Valaam began. The monks took valuables with them, including the Valaam Icon of the Mother of God. In 1945, Metropolitan Gregory Chukov visited New Valaam and joined the monastery to the Moscow Patriarchate.

In 1989, the monastery was transferred to the Leningrad diocese. In 1998, the brotherhood opposed ecumenism. In 2000, the Archpastoral Council adopted "Basic Principles of Relations with Non-Orthodox."

In 2005, the bell "Andrew the First-Called" rang. In 2007, Patriarch Alexy II visited the monastery, and in 2009, Patriarch Kirill opened a museum named after Patriarch Alexy II.

As of 2011, the monastery had 217 people, including sketes and dependencies.