It is the only church of Kastoria that has a dome, a fact that is revealed by the name Koumpelidiki, since "kubbe" means dome in Turkish.
The church was built during the 11th century in order to celebrate the victory of Byzantine emperor Vasileios the Second that resulted to the liberation of the city from Bulgarians.
The church of Panagia Koumpelidiki follows architectonically the Byzantine structural pattern, while its murals date from the 11th century, the period of its foundation.