It is on the southern coast of the Athos peninsula, between the Athonite port of Dafni and Osiou Grigoriou monastery.

While the southern coast of Athos is generally quite rugged, the site upon which the monastery is built is exceptionally harsh.

It is built on top of a single huge rock, practically hanging from a cliff 330 metres over the sea.

Simon called the original monastery "New Bethlehem" (Greek: Νέα Βηθλεέμ); to this day, it is dedicated to the Nativity of Jesus.

In 1364, the Serbian despot Jovan Uglješa funded the monastery's renovation and expansion, issuing a royal chrysobull for it in 1368.

The most important donor was Michael the Brave, Prince of Wallachia, who donated large portions of land as well as money to the monastery.

[6] The monastery consists of several multi-storeyed buildings, the main being in the place of the original structure, built by Simon.