The site has held a place of worship since at least the 1500s, when a modest chapel is thought to have stood here. It was replaced in 1660, rebuilt around a century later in 1779, and altered again in the 1820s. Burial rights only came in 1846, when a churchyard was consecrated beside the chapel; before that, the dead of Yttermalung were carried to Malung for burial.
The building visitors see today largely originates from 1889–1890, when the older chapel was demolished and replaced with a new one designed by architect Gustaf Sjöberg in a Gothic Revival style, arranged on a cross-shaped plan with a west tower and sacristy behind the altar.
A further, more dramatic transformation followed in the mid-1960s. After local residents petitioned for renovation, architect Tore Virke oversaw a rebuilding of 1964–66 that converted the cross-plan chapel into a long nave church with a polygonal chancel to the east, a sacristy to the north and the tower retained in the west. Parts of the older walls and a few windows were incorporated into the new structure, while one truncated transept became a side aisle lit by a tall floor-to-ceiling window. The original exposed ceiling beams were concealed behind pine panelling, giving the interior a simplified, modern character quite different from its ornate Gothic Revival predecessor. Externally, too, the building was given a plainer profile, clad in white-painted panelling, with a simplified tower roof and spire.```(shortened for output)```. Nothing of the original 1890s architectural character remains visible today, making the chapel essentially a modernist and functional space shaped around fragments of an older building.```(note: removed stray artifact)```