The site on which the church was built in 1402 was originally the site of an old hospice, dedicated to St. James, as attested in a document of Pope Innocent III in 1210. The hospice and its chapel were passed on the Servite Order by bishop Paperone de' Paperoni in 1273. They transformed the main hall of the hospice into a church. The present church was built in 1402 under Prior Filippo di Massiolo da Foligno, incorporating the older church at its crossing. This was probably largely financed by Ugolino III Trinci, the lord of Foligno. The church was modified in the 17th and 18th centuries. The earthquake of 1997 badly damaged the church; restoration of the church was finished in 2000.