The monastery was founded by Byzantine icon-worshipping monks no later than the 8th century. In 754, persecutions against icons began in the Byzantine Empire, and prayer before them was considered idolatry. According to legend, monk Michael decided to save an icon by taking it from the monastery. He set out on a journey to find a new refuge. In his search, Michael reached Crimea, where the Virgin Mary appeared to him in a dream and informed him that the persecutions would soon end, and he should settle in one of the caves in the gorge, where a large monastery would later arise. The prophecy, it is said, came true: in 780, the struggle against icons ended, and the cave with Michael turned into a large monastery.

In 1475, the Ottoman Empire captured the city of Chufut-Kale, destroying half of its inhabitants and founding the new city of Bakhchisarai. All this happened 2-3 km from the monastery. During the hostilities and the construction of Bakhchisarai, the Assumption Monastery not only survived but also became a center of Christianity in Crimea. There are many legends that the Crimean khans came to the monastery to the holy icon for help before important events.

New difficult times for the temple began in 1778 when the Crimean khans began persecuting Christians and their faith. Most of the Orthodox population moved to the shores of the Sea of Azov, where numerous villages and the future city of Mariupol were founded. The Crimean khan did not limit himself to purges on the peninsula and conducted raids on the mainland of the Russian Empire, leading to war with Russia. In 1783, the Crimean Peninsula came under the control of the Russian Empire, and the Assumption Monastery once again became a place of attraction for parishioners and believers from all over Russia.

Difficult times came after the 1917 revolution when the temple was closed and looted. Restoration began in 1993 when the territory of the temple was transferred to the Crimean Patriarchate, and long years of restoring ancient relics began.

Today, the Assumption Monastery is open to all. Visits are allowed strictly according to church canons: men are not allowed to enter in shorts, and women must wear skirts and have their heads covered.