The monastery is situated 2 km far from the centre of the town of Sandanski, near the right shore of Sandanska Bistrica river. The place, where it is built is called Smilovo. There are no evidences when exactly the monastery had been built. It is believed that it happened in the IV-V century, but this is only conjecture. Legend tells that there had lived the brothers Kozma and Damyan, who healed people with the mineral water in the town. Old water pipes testify for an earlier existence of a holy place here. The present monastery is built over the remains of the old one from 1928 from the local people of Sveti Vrach (the old name of Sandanski). In 1998, the monastery was finished and a fence was built around it, as well as monastery gates and two chapels – one of St. Petka and one of St. Dimitar.