The chapel was built for a rapidly growing suburban district. Through the 19th century the area north of Frölunda, between the city boundary and Långedrag, was sparsely populated, but numbers rose sharply after 1900, encouraged by the new tramway from Gothenburg to Långedrag completed in 1907. A local appeal by the parish priest in 1912 sought voluntary donations for a chapel to serve the growing community, since no public funds were available; a generous plot of land was donated by a property company, and enough was raised to build a chapel designed by architect Yngve Rasmussen, completed in 1917.
Disaster struck barely a year later. On the evening of 20 January 1918 the newly built chapel caught fire, reportedly starting near the boiler room. Despite efforts to raise the alarm, snow-blocked roads and a limited water supply hampered the response, and the building was gutted, leaving only its granite outer walls and chimney standing.
The chapel was rebuilt in 1919 to Rasmussen's original designs, and this is essentially the building visitors see today. It has long whitewashed walls, an extended chancel, steep tiled roofs with dormer windows, and a slender spire-topped tower; the tower and gable ends are finished in brown-impregnated timber. Inside, an exposed roof truss and plastered stone walls reflect the architect's wish to echo older local church-building traditions. When Älvsborgs församling was created in 1967, the building was renamed Älvsborgs kyrka.
The interior has been altered more than once. A 1940 restoration lightened the colour scheme and substantially remodelled the chancel, removing a chancel screen and replacing older apse paintings with a new altarpiece, a triptych by Saga Walli according to one source. Further restorations in 1985–86 lightened the interior again, introduced new pews, and added a connecting passage to the parish hall; a 2003 restoration renewed the roof, exterior paintwork and sacristy arrangements. A granite font dating from 1924 and a mechanical organ built in 1959 are among the church's notable furnishings.