A church is thought to have stood on this site since medieval times, beginning with a small wooden church, possibly dating from the early medieval period. From that early building a soapstone font from the 13th century survives and can still be seen inside the present church.
The first stone church here was built in 1641, but it burned down in 1699 after being struck by lightning. It was rebuilt and later enlarged in the 1790s, only for fire to strike again in 1886, destroying this version of the church as well.
The church seen today was built in 1887-88 on the walls of its burnt predecessor, to a neo-Gothic design by the architect Adrian Crispin Petersson (also recorded as Adrian C. Peterson). It is built of stone in cruciform plan, with a tower to the west and transepts extending from the nave. Twentieth-century restorations altered much of the original neo-Gothic decorative detail.
The rapid population growth of the later 19th century led to a wave of large new church-building across Värmland and Sweden generally, and Sunne kyrka's scale reflects this era of expansion. Inside, visitors can see paintings by the artist Tor Hörlin and an altarpiece depicting the Resurrection of Christ, painted by Simon Sörman. A cope by Sten Kauppi and a crypt are also part of the church's furnishings.
The church's organ history spans several centuries, from an early 18th-century instrument by Johan Niclas Cahman through later rebuilds, reflecting the changing tastes and technology of organ-building over time.