The parish was established in the 1640s as the local iron industry expanded, and a timber church was raised to serve the growing community. In its earliest form the building was a simple rectangular nave with a three-sided chancel end.
As the population increased, the church proved too small, and between 1722 and 1733 it was extended with two transept arms, one to the north and one to the south, along with a sacristy. The exterior was clad in wood shingles and coated with tar, giving the church broadly the appearance it would keep for well over a century.
A major transformation came at the end of the 19th century, when the church underwent extensive repair. The façades were reclad with white-painted tongue-and-groove panelling, the original slate roof was replaced with sheet metal, and the tower spire was rebuilt and made taller. In the 1950s a further restoration, led by Tor Engloo according to Wikipedia, sought to return much of the church to its earlier character.
Among the furnishings, the oldest is the organ façade dating from 1660, though it did not arrive at Lungsund until 1859, having previously served in Kristinehamn church. The pulpit is later, donated in 1685 by Johan and Birgitta Linroth of Bjurbäcken.
Two elaborate memorial epitaphs also survive in the church, commemorating Birgitta Linroth, who died in 1698, and Johan Linroth, an assessor who died in 1720 — a reminder of the ironworking families whose patronage shaped the church's interior.