In 1903, the newspaper "Caucasian Mineral Waters," published in Pyatigorsk, reported the intention of monks from Mount Athos to establish a monastery near Pyatigorsk. Local authorities supported this idea. A plot of land was allocated for the monastery in the Pyatigorsk forestry, on the southwestern slope of Mount Beshtau, in the name of the Dormition of the Most Holy Theotokos. There were two sources of fresh water on this territory, one of which was called the Blessed. Initially, it was planned to use it for the water supply of Zheleznovodsk, but then the right to use it was transferred to the monks. The farm initially had 30 cows and calves. At the suggestion of V.V. Khvoshchinsky, a plan for the monastery's site was drawn up. On May 2, 1904, the rector of the Pyatigorsk Spassky Cathedral, Archpriest Mikhail Zakhayev, consecrated the site for the future Dormition Church. About 400,000 people gathered at the foot of Beshtau for this event. Father Mikhail noted that the Athonite monks were under the protection of the Queen of Heaven, and now this protection would extend to the local residents.

Construction began at the foot of Mount Beshtau. Along with the church, a three-story building for the brotherhood's cells with a hotel was erected, and next to the church, a house for the abbot, watchmen, senior brethren, a refectory, and a kitchen. The construction cost 26,000 rubles. While the work was ongoing, Hieromonk John and his assistants lived in dugouts in the mountain. By the fall of 1904, all buildings were completed. The first monastery church was consecrated in the name of the Dormition of the Most Holy Theotokos. The middle part and the walls of the altar were made of stone, the narthex was wooden, and the upper part of the church was also wooden. Above the narthex was the monastery's office, and below it was the refectory. A two-story building adjoined from the north, with the upper floor being wooden. The lower floor was divided by a corridor with the cells of the abbot, the dean, the ecclesiarch, the sacristan, and rooms for guests. The kitchen was located in the basement. Despite its modest appearance, the Dormition Church could accommodate up to 500 people and was distinguished by the beauty and abundance of church utensils. The celebrations for the consecration of the church began on November 28, 1904.

On the night of January 9-10, 1906, the wooden church was severely damaged by fire due to faulty stoves. The fire damaged the dome, floor, narthex, and ceiling of the refectory. However, the holy icons survived, although the iconostasis burned down. The monastery lost almost all its property and the ability to perform the Liturgy. Services were held in the guest room.

The revolutionary unrest of 1905-1907 did not spare the monastery. On the night of September 23, 1905, about 10 armed men broke into the monastery, trying to enter the abbot's cell. They killed novice Dmitry Likholetev, who tried to defend the monastery. The monastic brotherhood and workers rushed to defend it. The church watchman raised the alarm, preventing the intruders from entering the church. The attackers opened fire and fled. Dmitry Likholetev, an 18-year-old peasant from Saratov province, became one of the first Russian passion-bearers of the 20th century.

In the spring of 1906, construction of a new church began, which was completed by August. On August 15, the church was consecrated by Bishop Gideon. Up to four thousand people attended the consecration. Grand Duke Dmitry Konstantinovich congratulated the monastery via telegram. The monastery regained its church, and the number of pilgrims began to grow. In 1914, there were more than 20,000.

In the early years of Soviet power, the monastery continued to exist, hidden in the mountains. However, in 1927, the Bolsheviks closed the monastery, and the brotherhood fled to the mountains. In 1928, public protests allowed the monks to return, but only for a short time. In 1929, a new wave of persecution began, and the monastery was finally closed. Monks were arrested and sent to camps. The monastery's premises were converted into a sanatorium, then into the Society of Proletarian Tourism, and before the war, into an orphanage for Spanish children. After the war, the monastery buildings were abandoned and destroyed.

In 1997, a cross was erected at the site of the monastery, marking the beginning of its revival. The first builders, the Pyatigorsk Cossacks, prepared the site for the construction of the church. On June 21, 1999, the first church of the monastery was laid. The church was built in two years, and on August 28, 2001, it was consecrated by Metropolitan Gideon. Currently, the monastery is active, services are held daily, and the number of residents is growing.