The church was originally built in 1773 (some sources say 1766) in the village of Nes in Bjugn Municipality (now part of Ørland Municipality), where it was known as Nes Church. The Bjugn parish sold the church to the parish of Volda in April 1879 for 2800 kr. The church was then disassembled and moved from Nes to the village of Fyrde. It was reassembled there and renamed Austefjord Chapel (it was later renamed as a church). The builder was Gjert Lien from Nordfjord. The new church was completed and put into use in November 1879. The building was consecrated on 1 July 1880 by the local parish priest Lars Gledistch. Originally, the church was painted red, but later this was changed to white.[3][4][5]