The date the monastery is unknown, but it was mentioned in the 1100s. The Church of St. Nicholas was founded by King Stefan Decani in 1329. Burned during the Ottoman invasion, it was restored in 1570. The last restoration was in 1904. The monastery is just outside Prijob, on the bank of the Lim River. It has served as the seat of the Dabarska diocese since 1220 and later Dabar-Bosnia, founded by St. Sava. It was known earlier as St. Nicholas of Dabar. Some of the oldest icons in Serbia were found here.