The church occupies the site of Dragsmarks kloster, a Premonstratensian monastery founded in the thirteenth century, which included a Gothic monastery church. The monastery functioned until the Reformation, and ruins reportedly survived into the mid-nineteenth century. A small wooden church is recorded beside the decaying monastery church from 1594; that building burned down after a lightning strike in 1625, and a replacement stood from 1626 until 1754.
The present timber church was built from 1754, reusing some timber from its predecessor, and was consecrated on 1 January 1756. Its tower followed in 1762, built, like the church itself, by master builder Johan Feigel of Gothenburg. A sacristy was added in 1914, and in 1925 the church was extended eastward by 4.5 metres under the direction of Axel Forssén, with the choir moved further east.
In 1776 the entire interior was decorated by the painter Johan Henric Dieden, who also produced the ceiling paintings and, in 1800, an altar painting of the Baptism of Christ. Dieden, already known locally for his work at Bokenäs church, gave the ceiling a characteristic turquoise sky with grey-blue, gold-edged clouds. His decoration was painted over in white during renovations in the 1870s, and it was not until 1988–1990 that conservators uncovered and restored the eighteenth-century scheme, with missing sections reconstructed by conservator Anders Darwall. Surviving original work is concentrated on the chancel ceiling above the altar, including a motif with a Latin inscription meaning “Let there be light”, alongside fragments of a depicted Trinity.
Several fittings were carried over from the earlier church, including an altarpiece and pulpit made by Christen Snedker in 1626. The font dates from between 1756 and 1767 and is thought to have replaced a medieval thirteenth-century soapstone font, whose base is now held by the Swedish History Museum. The communion vessels are said to originate from the medieval monastery church, and the single bell in the tower was cast in 1698.
The organ, built in 1970 by John Grönvall Orgelbyggeri, has ten stops across two manuals and pedal. Its case comes from an earlier 1903 organ by Johannes Magnusson, and the instrument incorporates four stops salvaged from older organs.