The medieval rock monastery was built on the slope of a 40-meter-high cliff in a protected forest area. The rooms were carved on two levels of soft, chalky rock. The remains of two churches, a crypt and a refectory, as well as some of the cells where the monks lived, have survived to modern times.
The monastery was built most probably in the 12th century and remained in use until the end of the 15th or early 16th century. It is worth mentioning that in the vicinity of medieval buildings, the remains of a temple dating back to the 5th-6th centuries have been found.
The name of the monastery comes from the word "alaca" which means "colorful" in Turkish. It refers to colorful frescoes, the remains of which can still be seen on the walls in the sacred rooms.