It is situated to the south of the town of Slano, on a dominant place overlooking the entire bay, the channel and nearby hills. It is separated from the town by a road leading from the coast to the Prince’s Palace.

The Republic of Dubrovnik, immediately after acquiring the Dubrovnik Coast in 1399, granted permission to Bosnian Franciscans to build a monastery, in order to suppress Bogomilism. It refers to the donors of the church: the Gradić family, father Julije and sons Matej and Marin.