A church is thought to have stood on this site from the 1100s, when it served the medieval parish of Torsö (also recorded as Thoresrid or Thorsö). For reasons that remain unclear, the church was abandoned and fell into ruin during the Middle Ages; one suggestion is that the Black Death played a part, though this is speculative. Two sandstone grave slabs and a font surviving from this early period are said to date from the 1100s, and remnants of the original west gable and chancel arch may also be medieval.
In the 1600s the Traneberg estate came into the hands of Magnus Gabriel De la Gardie, a powerful nobleman with an interest in the area's churches. In 1678 he had a new chapel built upon the ruined foundations, naming it after his wife, the princess Maria Eufrosyne, sister of King Karl X Gustav. This rebuilt structure was a single-nave building that incorporated some of the older sandstone walling.
The chapel was enlarged in the mid-1700s under a later owner of Traneberg, Eric Månsson Ulfsparre, who added a three-sided chancel and a sacristy, reportedly built over medieval foundations. A wooden porch was replaced during this campaign, and the additions were constructed of brick and rubble stone. According to one account, the enlargement was prompted by the chapel's usefulness to sailors visiting Traneberg's harbours.
Among the chapel's furnishings is a wooden pietà dated to the 1400s, though this carving is now kept at the Västergötland Museum rather than in the chapel itself. The altar is built of rubble stone topped with a limestone slab, and much of the interior fitting-out, including the altar rail and altar decoration, is attributed to De la Gardie's patronage. Two Romanesque grave slabs carved with lily motifs are said to have served for many years as gateposts in the churchyard, an unusual afterlife for medieval memorial stones.