It is believed that the chapel is mostly from a church that was built around 1650, but a church was abandoned there in 1765. In 1930 the chapel was the first house in the country to be proclaimed inviolate, and in 1961 it was re-consecrated.
The beauty of the environment surrounding Núpsstaður is well known. The area reaches from the ocean and black sands and all the way to Vatnajökull. Núpsstaður lies right by the Skaftafell National Park and volcanic eruptions, glaciers and lakes have shaped the environment there, in addition to shaping diverse formations.
The eastern outline of the Núpsstaður estate is at Skeiðarársandur and it reaches to the north, all the way to Vatnajökull. To the east of the farm Lómagnúpur, well known from the Brennu-Njáls saga, towers. An apartment house, cowshed, and some other outhouses are still standing there. The first church at Núpsstaðir is thought to have been built before the Reformation in Iceland, before 1200. The church was dedicated to Saint Nicholas, but very few people were part of the congregation at this time. In 1765 it stopped being used for the congregation and became a private chapel. After 1783 is was used as an outhouse. In 1930, the national museum of Iceland, Þjóðminjasafnið, took over its control and in the years 1958-1960 it was repaired and restored. The farm has belonged to the same family ever since 1730. The farm mound is an extremely well preserved source on how farming was, and how the area was used in the past.
On the land of Núpsstaðir there is also the forest Núpsstaðarskógar. It is a beautiful copsewood that grows in the hills of Eystrafjall, west of Skeiðarárjökull and south of Grænalón. Diverse vegetation grows there and it's an area that's enjoyable to walk around. A rough track to the forest passes Lómagnúpur and Núpsvötn. Núpsstaður is listed as natural remnants.