It has the same name as the nearby village of Basarbovo and lies about 35 metres above the river Rusenski Lom, south of the Danube.
Although founded during the Second Bulgarian Empire, the oldest written mention of the monastery dates to the 15th century in an Ottoman tax register.
The monastery became famous in the 17th century after the death of St. Dimitar Basarbovski, whom St Paisiy Hilendarski talks about in the book Istoriya Slavyanobolgarskaya.
He was buried in the village church, but during the Russo-Turkish War of 1768-1774, General Pyotr Saltykov agreed to transfer his relics to Russia.
The legend tells that when the saint's relics entered Bucharest, people stopped dying from the plague.