The monastery was founded in the 8th century by icon-worshiping monks who fled from Byzantium. It is located to the north of the village of Ternovka, Sebastopol region. Shuldan is translated as "echoing place" or "impregnable place".

The monastery consists of two cave temples and 20 associated rooms, which are located on two floors. The monastery is live; monks and novices live on its territory and it is open to tourists.