The chapel's origins date back to the 1640s, when Gråträsk was an important stopping point on the route north to the Nasafjäll silver works. In 1645 the local Sámi bailiff Olof Jonsson was instructed by the provincial governor to build a small chapel here, as an annexe to a church being raised at the same time at Avaviken. It is not known whether a priest was ever formally assigned to serve these chapels.
The settlement's importance faded when Danish-Norwegian troops destroyed the Nasafjäll silver works in 1659, and Gråträsk's chapel lost much of its purpose. Remarkably, parts of the original outer walls are said to have still been standing as late as the 1920s, a fragile link to the seventeenth-century building.
The chapel seen today is a 1934 reconstruction, designed by the architect Sven Brandel and built under master builder Efraim Åkerlund. It features log-built walls and a steep, shingle-clad roof topped with an onion-shaped spire, with a porch on the south side and a sacristy to the north. The interior fittings were designed by Enar Leffler, with decorative painting carried out by the conservator Fridtiof Erichsson.
A free-standing bell tower, dating from 1938, stands to the north of the chapel, completing the small ensemble.