The parish of Masthugg was created in 1908, and plans for a new church had already begun two years earlier. After considering sites including Gamla Varvsparken, the city council chose the prominent summit of Stigberget. An architectural competition in 1907, involving several leading Swedish architects, was won by Sigfrid Ericson with a design in the national romantic style. Building work began in 1910 and the church was consecrated in October 1914, though its bells had already been used that August to announce national mobilisation at the outbreak of the First World War.
The building's most distinctive feature is the way it seems to rise directly out of the rock of the hill. Its foundations, sacristy and other lower sections are built of rough natural stone, said to have been chosen and placed with great care by the architect, while the upper walls are of handmade red brick. The 60-metre tower, topped by a weathervane in the form of a cockerel, matches the height of Gothenburg's German Church tower and is a recognisable feature of the city skyline.
Inside, the church has a three-aisled nave leading to a transept and a chancel that is polygonal on the outside but finished with a straight wall internally. The timber ceiling, ornamented beams and grey limestone floors and column bases contribute to a warm, richly textured interior quite different from the austere exterior.
Among the furnishings, the triptych altarpiece depicts the Ascension, flanked by scenes of Christ's agony in Gethsemane and the Crucifixion; it combines Ericson's design with sculptural work by Ninnan Santesson and painting by Engelbert Bertel-Nordström. The font, made from Gotland sandstone, was created in 1991 to a much earlier sketch by Ericson. A ship model of the full-rigger Java, presented by Gothenburg's Maritime Museum for the church's thirtieth anniversary in 1944, hangs in the nave, continuing a long Nordic tradition of votive ships in seafaring communities.
The large organ, originally built in 1914 and substantially rebuilt and enlarged several times since, is said to be the biggest church organ in the Diocese of Gothenburg. Masthuggskyrkan also serves today as the base for Gothenburg's Pilgrim Centre, which holds pilgrim services and talks connected with the wider pilgrimage tradition.