The hermitage was built in 1730 on top of a hill populated with olive trees. In this place was the last station of a Way of the Cross that started from the parish church and distributed its 13 stations around the outskirts of the town until it reached the sanctuary. Inside it keeps a painting of the Holy Sepulchre, which corresponded to the last station of the Via Crucis, and which is highly revered for being miraculous among the residents of Algarinejo.
The hermitage has a wide entrance portico, a central nave, and small domes on the sides, where one can find, among others, the image of San Isidro Labrador, much loved in the town and who stars in a crowded pilgrimage every May 15.

In 1929, because the building was in ruins, it was rebuilt, thanks to the donation of the illustrious son of this town, General Don Felipe Sánchez de la Cuesta y Navarro and his wife Doña Aurora, daughter of Commander Don Pedro Gutiérrez de Castañeda y Caro and Doña María del Araceli Tallón Cáliz. They made the reconstruction of the building at their own expense, as an offering in memory of their daughter María del Carmen, who died shortly before at an early age.