The church lies at the northeastern foot of the Trapezitsa and Tsarevets hills, on the right bank of the Yantra River, outside the city's medieval fortifications.

The church's exterior is decorated with blind arches and colourful ornaments: glazed rosettes, suns, rhombs and other painted figures.

It is theorized that it was a royal church in the early years of the empire and it received donations from members of the Asen dynasty.

According to the legend, the nobles (bolyari) Asen and Peter announced that the patron of Thessaloniki, the warrior saint Demetrius, would desert his city and come to Tarnovo to aid the Bulgarian rebels.

In the second half of the 19th century it was in a very bad condition, which was noted by Bulgarian and foreign researchers, including Felix Philipp Kanitz.