The church owes its existence to the sudden wealth brought by the great herring period of 1747–1809, when Klädesholmen's population swelled rapidly. A voluntary collection for a church began in April 1793, and building work was completed that same autumn, though consecration waited until the following year pending royal permission. It was intended that the building be pulled down once the herring fishing ended, but it has remained in continuous use ever since.
The church is a simple neoclassical timber building with white-painted panelling and a tiled roof, consisting of a single-nave hall, a straight-ended chancel of the same height and width, a sacristy, and a low western tower with a pyramid roof whose ground floor serves as a porch. The exterior is said to have changed little since it was built, and the barrel-vaulted ceiling and walls remain plainly white.
Inside, the altarpiece is arranged in three painted sections, showing a biblical text, the crucifixion, and the resurrection, with the symbol of God's all-seeing eye at the top. The pulpit dates from the church's construction in the late 1700s and retains gilded stars and painted arcading, though it was moved and lowered during restoration work in 1934. A large crystal chandelier at the front of the church is said to have been donated by a sea captain following a successful salvage operation in the late 19th century, a reminder of the maritime livelihoods that shaped the parish.
Other furnishings reflect the same seafaring world: a granite font from 1916, carved locally and donated by a herring fishing company, and a hanging model ship, apparently representing an East India merchant vessel, of a type traditionally given by sailors or fishermen grateful for rescue at sea. Sources differ slightly on some fittings' dates, but such church ships were customary offerings along the Bohuslän coast, symbolising the church guiding people through life's storms.
The present organ was built in 1989 by the Gothenburg firm of Hammarbergs Orgelbyggeri, incorporating pipework from earlier instruments and a case dating back to an organ of 1906; Wikipedia's account of the organ's history differs slightly in detail from the parish's own description, though both agree on the 1989 rebuild.