A Romanesque basilica dedicated to Saint Nicholas had existed at the southeastern corner of the Dresden market since the twelfth century.

The Wettin electors of Saxony, residing at Dresden since 1464, had the Gothic hall church rebuilt, from 1499 under the architectural direction of Conrad Pflüger.

The church was heavily damaged by Prussian cannonade during the Seven Years' War, with its Late Gothic choir almost completely destroyed.

After the war, the Dresden master builder Johann George Schmidt (1707–1774) set up plans for a Baroque reconstruction, which however were opposed by contemporary architects of the Neoclassicist school following Zacharias Longuelune (1669–1748).

After the building was gutted by a fire in 1897, the church interior was reshaped with Art Nouveau (Jugendstil) elements according to plans designed by the Dresden architects Schilling & Graebner including works by Hans Hartmann-MacLean.