A short walk from the Church of the Nativity, the Milk Grotto Chapel is a Catholic shrine maintained by the Franciscan Custody of the Holy Land. The cave and its white limestone walls have been a pilgrimage destination since the Byzantine period — Christian tradition holds that the Holy Family sheltered here before fleeing to Egypt.
The current chapel was built in 1872 on the site of a Byzantine church, fragments of whose mosaic floor are still visible. The atmosphere is quieter and less crowded than the Church of the Nativity. The sisters of a contemplative monastery attached to the chapel have maintained continuous prayer for peace here since 2016.