The church is located near Engatia, on the roads of Ariannou and Iasonidou, and is well preserved. The church is the oldest Catholic church of the Theotokos Peribleptos Monastery (also known as the "Lord Isaac Monastery") and dates back to the late 13th and early 14th centuries. It was a spiritual center in its time and is associated with the literary and teaching activities of Thomas Magistros and Matthaios Blastaris, important Greek scholars of the city.
The church is a typical example of the Byzantine architecture that characterized the city's churches at the time of its establishment, with one or more domes, a nave, and aisles. It still retains its original fresco decoration in some places, as well as wall paintings in the style of the period. It is a type of cross-in-square compound church with a dome and a semi-dome, and a second dome over the narthex.
The name is derived from a neighboring church of Panagouda, where the church's utensils were transferred when the church was converted into a mosque (Isakeye Mosque) by the Turks in the 16th century. The St. Panteleimon church, despite its close proximity to the main road in the city center, is a peaceful and spiritual oasis, serving as a pilgrimage site or a place of relaxation. It has been designated as a World Heritage Site by UNESCO.