Many buildings were built around the first church; in the upper part they gave rise to a cloister, while on the slopes of the hill a little quarter and a market grew up.

Originally the church was named Sancta Maria in Capitolio, since it was sited on the Capitoline Hill (Campidoglio, in Italian) of Ancient Rome; by the 14th century it had been renamed.

A medieval legend included in the mid-12th-century guide to Rome, Mirabilia Urbis Romae, claimed that the church was built over an Augustan Ara primogeniti Dei, in the place where the Tiburtine Sibyl prophesied to Augustus the coming of the Christ.

[7] During the republican experience of the 14th century, when self-proclaimed Tribune and reviver of the Roman Republic Cola di Rienzo inaugurated the monumental stairway of 124 steps in front of the church, designed in 1348 by Simone Andreozzi, on the occasion of the Black Death.

Condemned criminals were executed at the foot of the steps; there Cola di Rienzo met his death, near the spot where his statue commemorates him.

In 1571, Santa Maria in Aracoeli hosted the celebrations honoring Marcantonio Colonna after the victorious Battle of Lepanto over the Turkish fleet.

Other features are the wooden ceiling, the inlaid cosmatesque floor, a Transfiguration painted on wood by Girolamo Siciolante da Sermoneta, and works by other artists like Pietro Cavallini (of his frescoes only one survives), Benozzo Gozzoli, and Giulio Romano.

The church was also famous in Rome for the wooden statue of the Santo Bambino of Aracoeli, carved in the 15th century of olive wood from the Garden of Gethsemane and covered with valuable ex-votos.