On 1799, Russians leb by Chief Manager Alexsander Baranov, constructed St. Archangel Michael, now called Old Sitka, seven miles north of Sitka. The Russians built a large warehouse, stockade, blockhouse, blacksmith shop, residence for Baranov, quarters for hunters, and a men's house.

On 1802, after Baranov returned to Kodiak, a group of Tlingits from from the Indian River and near by Crab Apple Island, led by Chief Katlean attacked and destroyed the Russian fort, and killed most of the inhabitants, 20 Russians and up to 130 Aleuts. After Russians and Aleuts reached British and American trading ships that arrived in the harbor. Captain James Barber of the British ship "Unicorn" held several Tlingits captive until the Russians and 18 Aleuts captured during the attack were turned over to him. In late June, Barber freed the survivors and news of the attack reached Baranov at Kodiak.

In 1804, Russians returned with five ships and attacked Castle Hill. After sveral days of unsuccesful negotiations, the six-day battle ended with the Russians seizing and burning the Tlingits forts. The Tlingits flee and did not return to Sitka for some years.