The present wooden church was built in the mid-1700s, consecrated in 1755, replacing an earlier timber chapel first raised on the same site in 1620. Local craftsman Samuel Solberg of Falun provided the designs, and the builders dug deep foundation trenches packed with stone and slag to give the heavy log walls a stable base. The exterior was clad in wooden shingles, some reportedly reused from the demolished older chapel.
Architecturally the church has a cross-shaped plan, with the eastern arm forming a chancel with a straight end wall and a sacristy behind it with a three-sided eastern termination. The walls are built of horizontal logs, shingle-clad and painted red, while all the roof sections are hipped and shingled. The rounded window openings are original to the 18th-century building, and the ceiling is formed of two crossing timber barrel vaults.
The church's most distinctive feature is its interior decoration, transformed during a 1905 restoration led by the artist Carl Larsson. He had the walls covered with fabric and decorated with moss-green stencil patterns on a pale green background, and the pews repainted in a greenish-blue tone. This highly personal decorative scheme survives today, and Larsson also depicted the church repeatedly in his paintings and watercolours, cementing its association with him. A further major restoration in 1978 added insulation behind the log walls and reconstructed Larsson's stencil patterns on new wall coverings, since the originals could not be transferred.
Among the furnishings is a sandstone font said to have been donated to the church in 1659, predating the current building and presumably brought from the earlier chapel. An eight-sided pulpit was built in 1873 by a local joiner, C. M. Berggren, to designs by the architect N. Runer of Gävle.
An organ is recorded in the church as early as 1628, and instruments were built or rebuilt several times over the following centuries. The current organ dates from 1908, built by the firm E. A. Setterquist & Son of Örebro, with later adjustments made in 1973.
In 2002 Sundborns kyrka featured, alongside three other Swedish churches, on a set of Swedish Post Christmas stamps for overseas mail under the theme of "Romantic churches at Christmas time", a small but notable mark of its recognisable, picturesque character.