The church was built between 1686 and 1688 by the ironworks owner Anton von Boij, near the old monastery site on the shore of Lake Borasjön, between what are now Laxå and Finnerödja. It is a shingle-clad, cruciform building in a baroque style, with a central tower rising above the crossing.
In 1801 a sacristy and porch were added to the original structure. Then, in 1898–1899, the entire church was dismantled and relocated to central Laxå, closer to the newly built railway. During this move the two lowest courses of logs were replaced, the tower was raised, and a new porch was built. The church now has porches in both the north and south transepts, with the choir and sacristy housed in the west transept.
Several of the furnishings date from the original construction in the 1680s, including the ceiling paintings, altarpiece, pulpit and font, giving the interior a notably unified appearance for a building that has since been moved and altered. A wooden christening angel, said to depict Carolina Sabina Tersmeden, was donated to the church in 1758 by her husband Erik Tersmeden. A crucifix from the Tyrol region is thought to date from the late 16th century.
The church has had more than one organ. An instrument with 12 stops was built in 1899 by E A Setterquist & Son of Örebro; the current mechanical organ dates from 1984, built by the Danish firm Finn Krohn's Orgelbyggeri, though it retains the façade of its 1899 predecessor.
Ramundeboda kyrka remains the principal church of Ramundeboda parish, which also holds services in a small chapel at the nearby Casselgården parish house.