A church at Valdshult is first mentioned in records from 1540, likely a medieval timber church with a shingle roof, later rebuilt in the late 1600s. A porch was added in 1689 and a sacristy in 1705, and a previously freestanding bell tower was joined to the church in 1798. That older log-built, shingle-clad church stood until 1904, when it was demolished to make way for a new building.
Discussion about replacing the ageing church began in earnest during the 1880s, but it was not until 1901 that a final design was agreed. The plans, originally drawn up by engineer E. T. Cedergen of Nissafors, were reworked by the architect Fritz Eckert of the Royal Board of Building. Construction, overseen by master builder A. Gren of Öjhult, took place in 1904–1905. The resulting timber church has a nave with a narrower, straight-ended chancel to the south, a sacristy beyond it, and a porch to the north, its exterior finished with panelling and decorative moulding.
Inside, the church retains much of its original character in the Swiss chalet style (schweizerstil), with tongue-and-groove panelled walls and an open roof structure. A renovation in 1955–56 altered the seating, shortening the pews to create side aisles and removing four rows in the process.
Among the furnishings is a late-medieval crucifix, conserved in 1934, which was placed on the altar in preference to a white-and-gold wooden cross dating from 1905. The pulpit from the old church, a notable piece of woodcarving by Jonas Ullberg of Velinga made in 1718 in the Baroque style, was conserved and reinstated during the 1955 renovation. A medieval sandstone font, thought to date from the 13th century, was also brought back into use that year. The two bells are considerably older than the current building: the smaller was cast in 1670, while the larger dates from 1523, cast by Ulf Sonnasson in Skänninge.
The organ, on the south gallery, was completed in 1907 by Carl Axel Härngren and is of mechanical-pneumatic construction. Following restoration in 2014, it survives largely in its original condition.