Nikon Bay on Lake Ladoga is considered one of the best harbors and was named after Hieroschemamonk Nikon, who lived in the late 18th century. In autumn, fishermen lived in a wooden house here. On the hill in Nikonovo, there has long stood a chapel of Saint Andrew the First-Called, which was restored in 1846.

In 1896, pilgrim and benefactor I.M. Sibiryakov suggested to the abbot Gavriil to give up this place for the creation of a skete and donated 10,000 rubles. Although he planned to stay on Valaam, Athos monks convinced him to go to the Holy Mountain, where he soon died as a schemamonk in the Andrew Skete. The construction of the skete on Valaam was delayed due to the need to build stone churches in the Sergiev and Germanov sketes. In 1901, clearing began for the future temple. The drawings by architect N.I. Barankeev were approved by the diocesan authorities, and the Finnish Senate satisfied the petition for construction. The church was built on a granite slab, and with great difficulty, using explosions and hammers, they deepened the site for the future cave church, laid the foundation, and in the summer of 1902 began to erect the walls. A year later, the church was roughly completed, and by 1905, the interior finishing was finished. On July 30, 1906, the church was consecrated by the Archbishop of Finland and Vyborg, the future Patriarch Sergius. The cave temple in the name of Saint Andrew the First-Called was consecrated on October 29, 1906, by Abbot Pafnutiy.

The two-story church made of Valaam brick on a gray granite base has a strict appearance. The walls are decorated with flat projections and pilasters, the windows with semicircular finishes have "Old Russian" hanging weights. Other elements of ancient Russian architecture include the decoration of the three-flight staircase with 50 steps and granite columns, in the arch connecting them, there is also a hanging weight, gilded onion domes on octagonal drums, on the church and bell tower, crowned with eight-pointed crosses. The ringing of 8 bells, donated by Moscow benefactors, was heard for many versts. The church on top of the hill was clearly visible to ships arriving at Valaam from the west.

Four abbots participated in the construction of the skete: Gavriil, Vitaliy, Pafnutiy, and Mauricius. Abbot Mauricius, still a layman, made a pilgrimage to the Holy Land and decided to create a similar temple at the Holy Sepulcher in the Valaam Monastery. The carved doors under the porch lead to the lower church, above them was an icon of the Resurrection of Christ, consecrated in Jerusalem at the Holy Sepulcher. Past a small iconostasis made of white Italian marble, the path led to the Kouvouklion, a replica of the cave of the Holy Sepulcher. Behind the first door was the "Chapel of the Angel." In the center, under the icon of the Resurrection of Christ, was a cubic stone made of red granite, in the upper part of which was a particle of the original stone. A low and narrow passage led to the cave of the Holy Sepulcher. On the right was a marble replica of the Holy Sepulcher, on it a shroud and a particle of stone from Jerusalem in a silver frame. The cave was illuminated by 7 lamps, and light penetrated into the lower church through 6 small windows.

In the upper church, everything reminded of the Bright Resurrection of Christ: an abundance of light from 10 high windows, a two-tiered chandelier for 23 candles, a carved, gilded white iconostasis. The icons were painted by Valaam monks, one of them during the abbot Nazariy. Only the image of the Mother of God of Jerusalem was gifted by Moscow citizens in gratitude for the establishment of the residence. The interior decoration of the churches is now completely destroyed, and the upper church is used as a concert hall.

With the establishment of the skete, the first 6 monks settled there. At first, they lived at the foot of the hill, then built a wooden house next to the church. With the increase in the number of pilgrims, it was decided to read the Psalter continuously at the Holy Sepulcher. The monks, taking turns, never ceased their reading. By 1910, the number of the brotherhood had grown to 30, and a one-story cell and utility building with attics were erected against the eastern wall of the fence. The largest two-story building on a granite base with attics made of locally produced brick is located to the north of the church. On the first floor from the east was a refectory for the skete brotherhood, from the west, as well as on the second floor and in the attics, were monastic cells. Three buildings were constructed by the outstanding St. Petersburg architect, diocesan architect N.N. Nikонов. In the 1920s, a school for boys was established at the Resurrection Skete.