The cult of Saint Nicholas was probably introduced in Malta by devotees from Sicily during the Middle Ages.

The area were the chapel arises was originally known as Il-Kasar, although by 1500 it was already known as San Niklaw.

[2] Reference to this chapel is made by inquisitor Pietro Dusina during his apostolic visit to Malta in 1575.

The 1575 report mentions that the feast of St Nicholas was celebrated with vespers and mass and that the chapel fell under the jurisdiction of the parish of Żejtun.

Nowadays the chapel is part of the privately owned San Niklaw Estate which cares for the chapel and celebrates the annual feast of St Nicholas on December 6.