Founded in 1573,[1] or 1575,[2] and completed in 1586 through the expenditures of the Metropolitan bishop of Zahumlje and Herzegovina Savatije Sokolović,[3] who later became the Serbian Orthodox patriarch,[4] the monastery is dedicated to the Dormition of the Theotokos.

In 1982, a new reservoir, created by the Piva Hydro Electric Project, required moving the monastery.

[1] The monastery was originally located at the source of the Piva River, approximately 3 kilometres (1.9 mi) away from and 100 metres (330 ft) below the junction of the proposed Mratinje Dam, a hydroelectric plant.

Begun in 1969 and completed in 1982, the monastery was moved to its current position, which included the removal and replacement of over 1000 fresco fragments, covering 1,260 square metres (13,600 sq ft).

[15] However, the upper porch area was painted by a local priest Strahinja of Budimlje; this included Akathist to the Mother of God.

[4] Piva, Morača and Mileševa monasteries have been described as "breathtaking medieval masterpieces that store ancient writings and works of art".