The Chapel in Balnica is often called the Blacksmith’s Chapel, as the area where it is placed formerly belonged to a local blacksmith. It existed already in the second half of the 19th century, because the first mention of it is from 1879. At present, the chapel is built of river stone and covered with a tin roof topped with a spherical dome. Next to it there is a spring considered to be miraculous flows out. In the past Greek Catholic services were celebrated here, and water was blessed in summer. The chapel in the 70's was seriously damaged as a result of detonation inside the chapel unexploded live bombs, which a lot of are a lot of in these forests. Later it was renovated by social activists. The area was cleared from the scrubs, the metal sheet was replaced, the wall around the chapel was rebuilt, the foundations were strengthened. At the time, in the chapel was placed a picture of Our Lady of the Forest Guardian, by Zdzisław Pękalski, a well-known Bieszczady artist from Hoczew.
The chapel is situated off the beaten path of the road running to the station in Balnica. An appropriate board directing to the station was erected here and the trail was marked.