As Unstad doesn't have its own church so the village's graveyard was for generations by Borg Church. The journey from Unstad to Borge was long and arduous, and during times of bad weather in winter it was often only the men who travelled with the coffin to the final place of rest. It was not until 1927 that Unstad got its own graveyard. It is situated close to the beach away from the village and it has a small white chapel-like building, housing essential services. The first burial took place in 1928.

The area had previously been used for drying kelp and seaweed before it was burned and the ash sold for production of sodium carbonate, which was used in glass manufacture.