The monastery was built from 1388 to 1405. In Ljubostinja were buried Princess Milica, Lazar Hrebeljanović's wife and Nun Jefimija, which after the Battle of Kosovo became a nun along with a number of other widows of Serbian noblemen, who lost their lives in the battles on the river Maritsa and Kosovo Polje. Today, Ljubostinja is a female monastery, which preserves and maintains about fifty nuns. During the rebellion of Kočine, the people were invited on rebellion from the Ljubostinje monastery. After the collapse of rebellion, Turks burned the monastery to revenge the Serbs, and most of the frescoes were destroyed. Also, when the monastery was set on fire, a secret treasure was discovered hidden in the monastery wall behind icons in which the Princess Milica hid their treasure. Among the stolen treasure was located Crown of Prince Lazar, which is now in Istanbul.