The church was built in 1936 to serve the growing eastern districts of Halmstad, where gudstjänster (services) had previously been held in makeshift premises at a local school. It was designed by the architect August Svensson, with the drawings also reviewed by Sigfrid Ericson, and was consecrated by Bishop Carl Block on 13 February 1936 under the name S:t Nikolai kapell, honouring Saint Nicholas. The building was funded through voluntary work and donations organised by a charitable society running a children's home, and the land was a gift from Carl Kuylenstierna of the Sperlingsholm estate.
Alongside the chapel stood the Nikolaigården children's home, built by the same architect and team, sharing a roof that the bishop described at the consecration as uniting Christian preaching with Christian charitable work. The home later passed to the City of Halmstad, and in 1962, when the parish was divided, the chapel was renamed Olaus Petri kyrka. The church building itself was acquired by Halmstads pastorat in 2015.
Externally the church is faced in brick, while the interior is whitewashed beneath a three-part vaulted wooden ceiling. Furnishings have been altered over the years: the altar table was deepened and the altar rail made semicircular in 1967, and the pulpit was moved from the west chancel wall to its present position in 1975.
The church's interior fittings are largely the work of the sculptor Erik Nilsson of Harplinge, who created the altar, altar rail, pulpit, font, gallery front, hymn board and chandeliers, as well as figures of the twelve apostles. The crucifix on the chancel wall behind the altar is said to originate from the Beuron monastery in Germany. Two tapestries, made by Kerstin Persson at Agda Österberg's Tre Bäckar workshop in Varnhem, depict a baptism scene and a hymn-inspired motif, the latter hanging above the pulpit.
The church has had several instruments over the years, beginning with a harmonium taken over from Våxtorp church, followed by a mechanical organ from the Danish firm Starup & Søn in 1963, and a digital organ installed in 1998.