The church occupies a raised gravel ridge overlooking Stora Hammarsundet, with sweeping views towards Vättern and the Tiveden forests. This dramatic position dictated an unusual layout: rather than the customary east-west orientation, Hammars kyrka runs north-south, reportedly because the builder could only guarantee the ridge's load-bearing capacity along this axis.
The medieval church it replaced stood in the south-western corner of the churchyard and was demolished around 1820 after having become both dilapidated and too small for the growing congregation. Some of its furnishings survive elsewhere: two wooden sculptures and a sacramental vessel are held at the Swedish History Museum in Stockholm, while other items are preserved at the county museum in Örebro. Sources differ slightly on the wooden Madonna associated with the old church, sometimes referred to as the Hammarsmadonna, though both accounts agree it is now in Stockholm rather than in the church itself.
Built between 1819 and 1827 in a neoclassical style inspired by ancient Greek and Roman temples, the new church originally seated around 1,350 people, considerably more than the 350 places usually cited today. Its lantern tower was rebuilt in 1907 to a design by the Örebro architect Magnus Dahlander, replacing an earlier, more open structure.
Inside, the vast space is dominated by a large altar painting completed in 1935 by the artist Torsten Nordberg, depicting the parable of the great banquet from the Gospel of Luke. Local tradition holds that several figures in the painting were modelled on residents of the Hammar district, and one source notes the composition drew on a similar work in Viborg Cathedral. The pulpit, made by a joiner named Scarin, dates from the time of the church's construction and is one of few surviving furnishings from that period. The stone font is the church's oldest object, dating from the twelfth century, with an accompanying brass font dish from the early sixteenth century.
The church's two bells are of particular interest: the larger, cast in the first half of the fifteenth century, carries an inscription that has never been fully deciphered, possibly referring to King Erik of Pomerania and Queen Margaret, while the smaller bell, cast in 1695, bears the name of Karl XI. The organ has a layered history, with a facade surviving from an instrument moved here from Kungsholm Church in Stockholm in the early 1830s, itself built in the 1750s by the noted firm of Gren and Stråhle; the current pipework dates from the early twentieth century, and a separate chancel organ was added in 1977.