The sanctuary of the Madonna delle Grazie stands on the ramparts to the north of the city, fronted by a large tree-lined garden. The current building is located on the remains of the ancient church, perhaps contemporary with the foundation of Cherasco, dedicated to San Giovanni ad Fontes. Having fallen into a state of abandonment, it was rediscovered in 1760, thanks to the chance discovery during the renovation work on the building, of an ancient fresco depicting a Madonna with Child and angels. The fact seemed miraculous, also because, probably due to a natural chemical reaction, some red droplets appeared on the Madonna's face.
Following these events it was decided to build a more worthy church in honor of the Virgin. Work began in 1762 and already in 1764, although construction was only partially complete, the new site was consecrated. The coordination of the project was entrusted to Giovanni Francesco Damillano, while the architect Nicola Vercellone designed the new environment, designed to also incorporate the old pylon, making the frescoed wall the bottom of the main altar. The interior features a balustrade in gray Valdieri and white Pont marble, a gift from the Savoy family, created by Antonio and Carlo Casella, court marble workers and sculptors. The stucco decoration of the dome and the side altars are due to Francesco Barelli and Tivola, the two altarpieces depicting the Baptism of Jesus and San Luigi Gonzaga to Sebastiano Taricco and Pietro Paolo Operti, while the eight canvases illustrating the history of the sanctuary are the work of the Turin painter Maria Benna.