The town was founded as a posad near the monastery in the 16th century and soon developed into an important trading post.[5] During the reign of Ivan the Terrible, Pechory was an important border stronghold. It was besieged numerous times by Russia's enemies:In 1918, the settlement, which had been in oblivion for centuries, regained its status as a town.From February to December 1918, Pechory was occupied by the Germans. During the Estonian War of Independence, the town was occupied by the Estonian army on March 29, 1919. Under the terms of the Tartu Peace Treaty, Pechory and the territory around it, called Setomaa, were given to Estonia. During World War II the town was occupied by the German Army from 10 July 1941 until 11 August 1944. In 1944, after Estonia was occupied by the Soviet Union, Pechory and most of Petseri county were transferred to Pskov Oblast of the Russian SFSR.