It was founded in 1152 AD, under Byzantine Emperor Manuel Komnenos, by monk Ignatius.
The miraculous icon of the Virgin Mary, according to tradition, is the work of the Evangelist Luke (one out of the seventy). The sacred icon in the period of iconoclasm, in order to be saved by the iconoclasts, was thrown into the sea. The waves from Isauria swept it away and carried it to the coast of Paphos, at the site of Mullia. On 15 August 1152, monk Ignatios, who practiced in the area, in the location Kremasti, saw a great glow on the coast of Paphos. With divine enlightenment, he ran there, found the icon and set off to his retreat. Tired as he was, he fell asleep on the slope of Mount Roya, under a pine tree. In his sleep, an angel of the Lord envisioned him to build a temple in the name of the Virgin Mary. The building as it stands today dates back to the 1760s – 1770s, when the Bishop of Paphos was Saint Panaretos, who is the new founder of the Monastery.
The existing church is a building of 1760-1770 . The Iconostasis is a work of 1790, the pulpit of 1791, the Despotic throne is of the same period and the gynaeconite (the only one out of the six large and historical male monasteries that has a gynaeconite), of 1803. Christ is a work of the 16th century and the rest of the icons, apart of course from the one of the Virgin Mary, of the mid-18th century. The silver cross is the work of Ioannis Kornaros the Cretan (1801), donated by the Great Dragon Man of Cyprus, Hatzigeorgakis Kornesios.