The monastery lies near Panagia village, west of Pafos forest. Set in beautiful surroundings, the monastery, was founded in 1152 A.D. by a monk called Ignatios who found at Moulia area in Pafos the miraculous icon of  the Virgin Mary believed to have been painted by Luke the Evangelist. Ignatios took the icon to the mountain and built the monastery dedicated to 'Our Lady of the Golden Pomegranate'.

The monastery, whose present building dates back to 1770, has a collection of important icons and treasures. The church lies in the middle of the monastery and impresses with its frescoes above its three entrances. The icon of Christ and the Virgin Mary in the monastery is also believed to be painted by Apostle Luke the Evangelist. It is gold and sliver plated.

A center for the protection of Byzantine and post-Byzantine icons and other treasures operated at the monastery. A Byzantine museum has recently been set up. In front of the main entrance of the monastery there is a café restaurant from where the view is panoramic and majestic.

An impressive religious ceremony and celebrations are held on 15th August.

The old winery of the monastery produces some of the best vintage wine of Cyprus produced from the monastery's vineyards.