A church at Mörlunda is first recorded in 1329, when a priest named Rangvaldus Beronis is mentioned as serving there. That early building is known to have burned down during the Nordic Seven Years' War in 1567, after which it was rebuilt, burned again, and rebuilt once more. The current church was completed in 1840 and formally consecrated in 1843.
The altarpiece, painted in 1840 by Salomon Andersson, is a copy of Rubens's depiction of the Descent from the Cross, set within a neoclassical altar surround. The pulpit, reached by stairs from the sacristy, is rounded in form and decorated with gilded garlands and inset columns, topped by a cross-crowned canopy; it was made at the same time as the church itself.
The church's organ has a layered history. An original instrument was built in 1762 by Lars Wahlberg and Anders Wollander of Vimmerby, with around eight or nine stops. It was enlarged in 1843 when moved into the new church, rebuilt again in 1915, and replaced with a new organ works in the mid-1940s. Further changes followed in 1958, and in 1984 a new mechanical organ was built behind the surviving 1843 façade.
Behind the church stands the only runestone in the local area. It is thought originally to have stood near an Iron Age burial field a little north of Mörlunda. Fragments of the stone were found in a field clearance cairn in 1907, but it was not until 1936 that the pieces were joined together and the stone re-erected by the church. The runic inscription, in letters around 15 centimetres high, commemorates a father and two other named individuals. Two further runestones once stood inside the older pre-1840 church but have since been lost.