It is located in the village of Fjotland on the northeastern shore of the lake Fjotlandsvatnet.

It is one of the two churches for the Fjotland parish which is part of the Lister og Mandal prosti (deanery) in the Diocese of Agder og Telemark.

Construction began on a new church in Fjotland in 1670 and it was not completed for several years.

The local tradition says the crucifix was found by some local fishermen who found it floating in the sea nearby and they hauled it ashore and put it in the church.

This tradition supports the assumption that there was a medieval church on the site as well.