The chapel stands roughly where Gladhammar's old church once stood, on a site that has served as the parish burial ground since medieval times. That earlier building was a timber church dating from the 14th or 15th century, with a rectangular nave, a narrower straight-ended chancel to the east, a timber porch to the west and a stone sacristy to the north. It was demolished in 1889 once a new parish church had come into use nearby.
The present chapel was built between 1936 and 1938 to designs by the architect Johannes Dahl of Tranås, who intentionally shaped it to recall the form of the vanished medieval church. It consists of a nave oriented north-south, with a lower, narrower porch at the south end and a similarly modest sacristy to the north. Unlike its predecessor, which had been clad in wooden shingles, the new building's walls and roof are covered in slate.
Inside, a Baroque-style altarpiece dated to 1643 hangs on the north wall. It is said to have been donated to the old church by Johan Sparre, linking the modern chapel visually to its medieval forerunner even though the buildings themselves are a century apart. The chapel's organ was installed in 1994.