Skálholt was through eight centuries one of the most important places in Iceland. From 1056 and until 1785, it was along with Hólar, one of Iceland's two episcopal sees, making it a cultural and political center.

The new cathedral was built in the years 1956 to 1963 as a part of the millennial-celebrations of the episcopal see. Gerður Helgadóttir's extensive stained glass windows of the church are for example a gift from the Danes.