On 14 November 1516, John Stewart, Duke of Albany, acting in the name of King James V of Scotland, authorised Patrick Panter, Abbot of Cambuskenneth, to re-institute the house.
On 18 May 1517, Pope Leo X granted Albany's petition to transfer the property of St Mary's Hospital to the friary.
The black friars of Montrose, like mendicants everywhere else in Scotland, were targeted during the lead up to the Scottish Reformation.
A letter by Francis II of France and Mary, Queen of Scots, dated 22 February 1559, confirmed the decision of the lords of the secret council to eject the friars and restore the hospital.
King James VI of Scotland granted the property and remaining revenues of the friars to the burgh of Montrose on 1 January 1571.