The church was built in 1828 as a gift from shipowner and Djurgårdsvarvet part-owner John Burgman, combining a church and a schoolhouse. At the time there was no bridge to Djurgården, and parents were reluctant to ferry their children across to schools on the mainland, so the building served the many boatmen and shipyard workers living on the island. By 1876 as many as 217 children were being taught here, before a dedicated school building opened nearby two years later.
The building's early history was not purely religious: during the 1830s it also served as a cholera hospital. Since 1880 it has been used solely for worship and parish activities, and an upper-floor parish hall continues to serve gatherings such as christening receptions. Originally part of Hedvig Eleonora parish, the church became the sole and oldest church of the newly formed Oscars parish when it was created in 1906.
The altarpiece, depicting a blessing sun, was painted and donated to the church by Prince Eugen, and remains one of its most celebrated features. A bell tower designed by Ragnar Hjorth was erected in 1949–50, carrying a bell inscribed with verses written by the Djurgården resident and poet Hjalmar Gullberg.
The church's current organ was built in 1958 by Åkerman & Lund of Knivsta, replacing an earlier instrument installed in 1939. Visitors may also find a corridor used for changing art exhibitions, featuring paintings, photographs, textiles or icons.