The convent is located on a site known as Pühitsetud ("blessed" in Estonian) since ancient times. According to a 16th century legend, near the local village, Kuremäe, a shepherd witnessed a divine revelation near a spring of water to this day venerated as holy. Later, locals found an ancient icon of Dormition of the Mother of God under a huge oak tree. The icon still belongs to the convent. A small Orthodox Christian church was built in Pühtitsa in the 16th century. The convent was founded in 1891.