For centuries the villagers of Baskemölla belonged to Gladsax church and its churchyard, several miles away along a road that could become difficult, especially for funeral processions in winter. Locals also wanted their family graves closer to home, and in 1917 land for a new cemetery was bought from Gladsax municipality. Villagers organised the layout themselves, while the parish paid for the stone wall around the burial ground, completed in 1922.
When the cemetery plans were approved, the idea of adding a chapel gained ground. It is said that the vicar in Gladsax was reluctant to travel out to the fishing village to conduct burials, and in 1924 residents formed the Baskemölla work association, later renamed the chapel association, to raise funds. Gifts, annual subscriptions and auctions eventually brought in enough money, along with support from the Gladsax parish council, to secure a loan covering the rest of the building costs.
The chapel was designed by Nils August Ewe, county architect for Malmöhus and Kristianstad, and built during the summer of 1927 under builder Alfred A. Nilsson of Tomelilla. It was consecrated on 20 October 1927 by Edvard Rodhe, then Bishop of Lund.
Practical improvements followed over the years: electric lighting was installed in 1933 and a water supply reached the cemetery in 1943. Growing use of the building led to a northward extension with a new chancel and electric heating in 1951. Exterior renovations were later carried out in 1985 and 2000, maintaining the modest wooden chapel that still serves the village today.