Due to the harsh mountainous topography, the ancient people of Eastern Armenia had to dig cave dwellings at Old Khndzoresk in the 13th century. The village was still inhabited until the late 1950s. According to an estimation, there lived around 15,000 people who used a complex system of ropes and ladders to reach their man-made caves. However, deeming that it was uncivilized for people to still live in caves, the Soviet officials forced the villagers to leave. Today, a 160-meter-long suspension bridge connects the Old Khndzoresk and the New Khndzoresk.
Until the 20th century, the Old Khndzoresk was the largest village in East Armenia.
During the early 20th century, the village had around 1,800 households. The village also had two churches, 27 shops, 3 dye houses, tanneries, and 7 schools. Nowadays, the caves function as stables and warehouses.