The Church of the Assumption of the Blessed Virgin Mary is part of the Central Archpriest's Courtyard along with the churches of the Ascension and Sergius. It is the only building in the history of stone architecture of the 17th century where the main volume is covered by a cross barrel with four faces. The church is recognized as a cultural heritage site of federal significance.

On the site of the current stone Assumption Church, there was previously a monastery mentioned in a charter by Tsar Vasily Shuisky in 1606. The monastery housed a wooden church dedicated to the Assumption of the Blessed Virgin Mary, but in a document from 1621, it is already listed as a parish church.

The stone church was built by merchant Afanasy Firsovich Olisov and completed in 1672. In 1715, the church suffered from a fire but was restored.

In 1934, the church was desecrated, and the refectory and bell tower were destroyed. It was planned to demolish it for the construction of a new residential area, but thanks to the intervention of architect V.V. Voronkov, as he later described in his memoirs, this was avoided. The main part of the Assumption Church was restored during renovations in 1965 and 1967, although the project by Svyatoslav Agafonov also included the restoration of the refectory and bell tower. In 2003, a great consecration of the altar was conducted.

In 2004, the church was restored as part of the "Ilyinskaya Sloboda" project, becoming the first restored church in this project. The refectory and bell tower were recreated. On March 15, 2004, under the guidance of A.V. Antsiferov, work began on the painting of the church, restoration of the altar, and creation of the iconostasis. On June 12, bells and crosses were consecrated, with the largest bell weighing 1600 kg. On July 28, the church was included in the archpriest's courtyard.

On July 29, 2004, Bishop Georgy of Nizhny Novgorod and Arzamas conducted the Great Rite of Consecration of the church. In December 2005, a Christmas tree was installed in front of the church for the first time.

On October 14, 2011, the consecration of four mosaic icons took place: the Savior Not Made by Hands, Saint Prince Georgy Vsevolodovich, Blessed Sergius of Radonezh, and Archangel Michael. The icons were created in the icon painting workshop "Ark," with work on each taking about two months. All images were placed on the outer wall of the Assumption Church.