The present church was consecrated on 11 October 1874 by Bishop H.G. Hultman of Växjö, replacing an earlier church dating from the 13th century, which had stood abandoned and decaying for some years before being taken down. Agunnaryd's church history stretches back further still: the earliest known site was a manorial chapel at Brånanäs by the lake Agunnarydssjön, while a medieval parish church once stood around 300 metres south of the current building.
The church has been altered several times since its consecration. In 1936 two side rooms were added to the chancel and new windows installed; in 1958 additional rooms were created beneath the gallery at the rear; and in 2001 the chancel floor was renewed, the ceiling repainted, and the altar moved forward. A distinctive feature of the interior is a pair of side galleries, designed by a local parishioner, J.M. Carlsson of Målensås, after the original church plan had already been approved. The apse and ceiling paintings are the work of the artist Torsten Hjelm, completed in 1937 and partly reworked in 1957.
Several older fittings were carried over from the demolished medieval church. A painted hymn board survives from the 13th-century building, restored in 1946. The pulpit, too, originates from the old church: made at Marsholm in 1592 with support from Nils Siöblad, it is carved with figures of Christ and the apostles Matthew, James, John and Peter, though the sculptor's identity is unknown; it was restored in 1958. A three-branched candle holder hanging above the pulpit is said to date from the 17th century and also came from the earlier church.
Other notable furnishings include a longcase clock made in 1747 by Peter Ernst of Växjö, one of Sweden's leading clockmakers of the 18th century, who is also credited with the tower clock at Växjö Cathedral and a clock at the Supreme Court in Stockholm; a brass and crystal chandelier in Baroque style, bought in 1875; and a font dating from 1944.
The main organ was built in 1875 by Carl Elfström of Ljungby and is a mechanical instrument with fixed combinations; it was reconstructed and restored by Ålems orgelverkstad, reopening in March 2015. A smaller mechanical chancel organ was added in 1978 by J. Künkels Orgelverkstad.