The foundation of the church and convent of Monasterio de Guadalupe can be traced during the approval of its erection during the Provincial Chapter of the Augustinians on March 7, 1601. It was founded with a designation of domusformata under the advocacy of the Blessed Virgin Mary, our Lady of Grace, the oldest Augustinian Marian devotion. In 1603, because of popular request, it was however changed to the patronage of our Lady of Guadalupe. A wooden replica of the image of our Lady of Guadalupe from Extramadura, Spain, used to be kept and popularly venerated in the church. But the said image was lost forever after the damaging earthquake in 1880.
The stone structure was completed sometime in 1623 under Fray Hernando Guerrero, OSA. However, many natural and man-made calamities had devastated the structure. A series of repairs were done by the Augustinians as time went by. But, ultimately it was destroyed in February 1899 during the Filipino-American war and was left for a long time in ruins. Some of its stones were used for the reconstruction of the Manila Cathedral leading to the demolition of the monastery building in 1950’s. After almost 70 years, the then Archbishop of Manila, Rufino Cardinal Santos, DD, invited back the Augustinians to pastorally manage the parish on June 29, 1970.
The Augustinians enthusiastically rebuilt the monastery and church as they were given fifty years by the archdiocese for its pastoral care. Today the community continues to manage the parish which was named back to its original title as the NuestraSeñora de Gracia Parish. The community also houses the formation of professional/late vocation seminarians preparing to be future Augustinian priests and brothers.