The Church of Madonna delle Grazie in Butino stands on the ruins of Vetranula castrum destroyed by the earthquake in 1328 and linked to the birth of the legendary "Strascinati", typical dish of Monteleone. A polychrome wooden sculpture of Seventeenth century, today in St. Francis, belongs to this church.

The Church is cited by Piersanti in 1702 and briefly described by Lascaris Bishop in 1712 ("It was a hermitage inhabited by Friar Giovanni Latti. The church was patronage of the community ", while today it is owned by the Landowners Association). Situated in Faggio or Secco mountain which dominates the whole valley, the church was probably born on the ruins of the Vetranula castrum destroyed by the earthquake of 1328. Nearby, in fact, there are some traces of ancient structures, including a cistern. To Vetranula one can associate the legend that in 1494,  during the struggle between Guelphs (supporters of Pope Alexander VI) and Ghibellines (favorable to the French king Charles VIII), the army led by Paolo and Camillo Vitelli invaded Monteleone. The army took Vetranula, imprisoned men and ordered the women to prepare a feast and serve them. The rage of the women made them to prepare a very poor table, based on “penchi” (a kind of pappardelle pasta) lightly seasoned. The invaders, angry for that, threatened to tie the prisoners to the horses and to drag them around the castle until death, but, avoiding this, the “penchi” were transformed into a tasty dish, flavored with bacon, fresh sausages, eggs and cheese. This is how the "Strascinati" were born, cooked in Monteleone di Spoleto according to this ancient and traditional recipe. Every year the "Festival of Strascinati" is held on August 16^th  with the evocation of the historical parade in costumes and the race of the shot with the bow held between the Terzieri. The Church of Madonna delle Grazie is remembered instead for the episode of 31^st March 1944, when Monteleone inhabitants take refuge in the surrounding church and manage to escape the German army thanks to a thick fog, which protects their guards and promotes the escape. In memory of the event, on March 31^st, 1986 a cross is affixed near the church, with this inscription: "The fear and sorrow overwhelms us to war, faith and love bring us together in peace." The building, of simple and modest size, has a rectangular plan and a sloping roof, topped by a belfry with two arches. The external walls are made in stones, except the façade which is plastered (with traces of a brick design). The interior has terracotta tiles, ceilings with wooden beams and a modern statue of Madonna with the Child, which is kept in a niche behind the altar. Next to the place of worship there is a small room used as hermitage. The oldest sculpture of Madonna with the Child of the seventeenth century, preserved in the complex of St. Francis in Monteleone di Spoleto comes from this place. The beautiful polychrome wooden sculpture has gentle naturalistic shapes, exemplified by the humanity of the chubby naked baby Jesus that in the peace of sleep, abandons himself between the mother's arms. The Virgin has instead a tormented face, which seems to reflect the movement of the hair, the neck and the folds of the red and blue robes.