Munkfors grew up around a 17th-century ironworking hammer forge at Munkforsen, and its population expanded rapidly during the later 19th century. As the settlement had belonged to the distant Ransäter parish, residents decided to build a church of their own, completed in the summer of 1920 in a style shaped by the national romantic taste of the period, with some Art Nouveau touches.
In December 1984 a fire destroyed this building almost entirely, leaving only its brick walls standing. Fortunately some fixtures were rescued, including the church silver, the font and various textiles. The decision was taken to reconstruct the church on the surviving walls, recreating its original layout: chancel to the east, a west gallery with organ, a north aisle and a north-west tower.
The rebuilding was carried out under architect Jerk Alton, and the church reopened in 1987. Some alterations were made during reconstruction, notably moving the sacristy to the south side of the chancel to provide more storage space, including for textiles. The interior is decorated in light colours, with a free-standing altar placed centrally in the chancel.
Above the altar hangs a triptych altarpiece by the artist Pär Andersson, showing the Transfiguration of Christ in the centre panel, flanked by scenes of Christ's birth and his time in Gethsemane. The octagonal font rescued from the fire, with its ring of eight pillars supporting the basin, now stands on the south side of the chancel.
The church's original 1920 organ and its intended 1984 replacement were both lost, the latter destroyed before completion. A new mechanical organ was installed in 1990, along with a separate chancel organ built in 1988.