Work on the present church began in 1703 under the direction of church builder Måns Rank of Filipstad. The building was consecrated in June 1706, though it was not yet entirely finished, with parts of the interior fittings still lacking at the time.
The church has a cross-shaped plan with a three-sided chancel to the east and transept arms extending north and south. Porches are attached to the west end and to the southern transept arm, and the sacristy stands north of the chancel. The towerless exterior is clad in red-painted timber shingles beneath tarred, split-shingle roofs, with round-arched window openings.
Inside, the nave walls show exposed horizontal log timber beneath a wooden barrel-vaulted ceiling, and three galleries occupy the church. Furnishings largely date from the first half of the eighteenth century, including a richly carved Baroque altarpiece from 1717 and a pulpit made and painted by Börje Löfman in 1721. The wooden font, with its six-sided bowl, also dates from the 1700s.//
A small organ stands in the chancel, built in 1707 by Elias Wittig of Gothenburg for a customs official there and only installed at Nyed in 1725. It was later sold to Molkom school in 1881 after a gallery organ was acquired, then given to the Nordic Museum in 1897, before being restored in 1959 and placed on loan back at the church, where it remains one of the older surviving organs of its type in Sweden. The gallery organ itself was rebuilt in 1927 and later enlarged.
During the nineteenth century the interior was altered during renovation work, but a thorough restoration in the 1950s removed several later additions in an effort to recover the church's original character. A freestanding bell tower stands just west of the church, thought to be roughly contemporary with it.