The chapel was built between 1908 and 1909 to designs by the architects Nils Segerstedt and C. A. Danielsson, and was consecrated by Archbishop Johan August Ekman on 26 September 1909. It replaced the need for local residents to travel to the parish church, and has remained a community-run building ever since, sometimes referred to officially as Grisslehamns Församlingshus.
The building is a timber-framed structure with yellow-painted horizontal panelling and buttressed side walls supporting a saddle roof covered in clay tile. A small ridge turret on the southern roof section houses a single bell. The rectangular building runs north to south, with the chancel to the north and a narrower porch section to the south that can, if needed, serve as an emergency worship space or sacristy. The entrance is set into the east wall via a small entrance stair, and the interior ceiling follows a simple triple-panelled form typical of many Swedish wooden chapels of the period.
Inside, the oldest furnishing is a wooden font pedestal dating from the 1700s, originally from Väddö church itself, above which hangs a votive ship model. The altarpiece was painted in 1911 by Gunnar Widholm, and the altar crucifix was carved in 1910 by the sculptor Gustav Norling. The pulpit, to the left of the altar, received its decorative painting in 1949. A further painting, depicting a crowned Christ figure, was donated in 1959 to mark the chapel's fiftieth anniversary, and a processional cross was given in 1981, blessed that summer at an open-air service.
The organ gallery on the south side features a balustrade painted by Harald Lindberg. The current organ, a mechanical instrument with slider chests, was built in 1958 by the Grönlunds Orgelbyggeri workshop in Gammelstad, replacing earlier heating arrangements that had been modernised with electric heating as far back as 1953.
The upper floor of the chapel contains an overnight room historically used by clergy conducting services during the summer season, reflecting the building's continued role as a modest, community-supported place of worship on this stretch of the Roslagen coast.