The chapel was constructed between 1907 and 1909 to designs by the architect Knut Beckeman, in the National Romantic style then popular for Swedish church building. It has a rectangular nave running north-south, with a narrower, straight-ended chancel to the north and a copper-clad ridge turret above the south gable. The building can seat around 200 people.
On 1 January 1970, the estate owner Vilhelm Kuylenstierna and his wife Märta donated the chapel and its churchyard to what was then Övraby församling, the forerunner of today's Halmstads församling within the Diocese of Gothenburg.
Inside, the church is simply decorated, with white walls and little ornament, allowing the altarpiece to stand out. Painted by Olle Hjortsberg in 1911, it depicts the Annunciation of the Virgin Mary. The figures on the altar's antependium are said to represent the Dominican friar Petrus de Dacia and Kristina av Stommeln, the woman with whom he shared a celebrated spiritual friendship.
The font, carved from Yugoslav oak in 1977 by the local artist Erik Nilsson of Harplinge, stands with an accompanying candlestick and is a comparatively modern addition among the church's furnishings. A small mechanical organ of five stops, built by Robert Gustavsson's workshop, was installed in 1980.
Set among tall trees with its quiet churchyard alongside, Sperlingsholms kyrka retains the intimate character of a private chapel rather than a parish church, a reminder of its origins as part of the Sperlingsholm estate.