The chapel's origins lie in the mid-1940s, when the old farm belonging to the Björnsson family came up for sale. An initial request for municipal funds to buy the property failed to gain the required majority, but local interest grew and supporters raised enough money—reportedly around 7,000 kronor—for a foundation to purchase the farm from Kersti Björnsson and her children in 1946.
Work then began, with considerable voluntary effort, to convert part of the farm buildings into a place of worship. The chapel itself was created within the farm's former stable and threshing barn, parts of a farmstead building dating from the 1700s. It was consecrated in August 1946 by Bishop Edvard Rodhe.
A further phase of improvement came in 1966, when a bell tower was added to the roof, to designs by Torgny Gynnerstedt, along with an electric bell-ringing system.
In 2006 the buildings were given to Borrby-Östra Hoby parish (since 2017 part of the newly formed Gärsnäs parish), though the chapel association has continued to organise events, and the parish holds services there from time to time.
Inside, the rectangular room has a red brick floor, echoing that of Östra Hoby church. Skillinge's long history as one of Sweden's notable maritime communities during the 1800s and early 1900s is reflected in the votive ship models hanging from the ceiling—among them vessels named Kristina, HMS Bounty, and Nanna av Skillinge—while a model of a medieval cog stands above the altarpiece. A ginkgo tree, sometimes called a temple tree, grows in the garden behind the chapel.