The church was dedicated to Saint Olav and it was possibly built during the 13th century.

The building was extensively rebuilt over the years, so that it was difficult to see the stave church character towards the end.

The church eventually fell into disrepair and the best plan for moving forwards was to replace the building.

So in 1845–1849, a new church was built on the south side of the churchyard, about 25 metres (82 ft) to the southeast.

The new Gransherad church is a log construction that was built by master builder Halvor Andreas Olsen using plans drawn up by Hans Linstow.