Grace Lutheran Church was founded by the Rev. Paul Gieger, with the first services held on December 9, 1956. He had purchased the property at 1250 Belvin Street in 1955 for the purpose of building a Lutheran elementary school.

Our present church building was erected during 1957 and early 1958. There were about 25 families who were charter members of the congregation.

Grace became affiliated with the Lutheran Church-Missouri Synod denomination in April, 1957. At that time the congregation purchased the property at 1250 Belvin with the help of the Synod.

Planned and designed by Pastor Geiger, the present church structure was built mostly by church members who worked tirelessly and gave sacrificially. It was dedicated in June, 1958.

The original altar, baptismal font, and other furniture were built by Fred Meierant. An organ was given to the church by Mr. Otto Beck, Dorothy Geiger's uncle, in memory of his sister Elsie Frueh (a charter member of the congregation).

Pastor Geiger served faithfully for over 20 years as the Pastor of Grace Lutheran until he retired on May 1, 1977.

The Rev. Jim Jensen was called to be the Pastor at Grace in 1978 and served until May, 1984, when he resigned in order to pursue a career in teaching.

The Rev. David Loeffler was called to Grace and was ordained and installed as Pastor in August, 1984. He served the congregation until March 31, 1986, when he accepted a call to Cross Lutheran in New Braunfels, Texas.

Pastor Evrett Gerdes served the congregation as a Vacany Pastor from April 1, 1986 to July, 1989. During this time, the congregation grew and worked together to improve the church facilities. A new altar, pulpit, and lectern replaced the originals, and the communion rail was moved forward to accomodate more communicants.

In the Spring of 1989, the congregation entered a dual-parish agreement with Evangelists' Lutheran Church in Kingsbury. On July 16, 1989, Pastor William F. Shupe was installed as Pastor for both congregations.

In the meantime, the congregation continued to renovate and expand on the church facilities with the addition of a larger entry and balcony, a cry room, and larger restrooms. These renovations were constructed by the members of Grace with the help of many generous donations.

In 1989, first plans were made to expand the Christian Education facilities of Grace. These plans were finalized in July, 1991 and construction was started on the Christian Education Building in the Fall of 1992. A Lutheran volunteer organization of builders called the "Laborers for Christ" arrived to oversee and help the members build the new Christian Education Building. The beautiful stained glass windows in the Christian Education Building and the Sanctuary were made by Norman and Millie McAllister, fellow Laborers for Christ.

The Christian Education Building was finally dedicated on May 16, 1993.

During 1994 the members of Grace decided that they wanted to pursue their own full-time Pastor. On October 2, 1994, at a Dual-Parish meeting with Evangelists' in Kingsbury, Grace dissolved its dual parish agreement.

Pastor Shupe became the Pastor of Evangelists' and continued to serve as Grace's Vacancy Pastor for the rest of 1994. Grace started the process of calling its own pastor, and entered into a contractural agreement with The Rev. Bruce A. Peffer, then Chaplain of Warm Springs Rehabilitation Hospital, for him to serve as Grace's Vacancy Pastor. Later on in 1994, Pastor Peffer was placed on the Call List as one of the Pastoral candidates for Grace. On May 21, 1995, Grace extended a call to Pastor Peffer, which he accepted on May 27, 1995. Pastor Peffer was installed as Pastor of Grace on June 25, 1995.

In July of 2004, after nine years of service to Grace, Pastor Peffer was called to serve at Concordia University in Austin. As the church sought a full-time pastor, Rev. Hugh Beck faithfully served as Grace's vacancy pastor until April 2005. The church was richly blessed by his dedication to proclaiming God's Word and serving the needs of the congregation of Grace. Rev. Albert Miller then graciously served Grace as our vacancy pastor for over two months.

Pastor Mel Newman was moved by the Holy Spirit to answer Grace's call for a full-time pastor and was installed on July 11, 2005.

From 1995 through the present, God has richly blessed Grace Lutheran with tremendous growth.

Indeed, throughout more than four decades, Grace Lutheran has shone the light of Jesus Christ into the San Marcos community. Grace continues to uphold the Scriptures as God's inspired Word, and seeks to serve the needs of people as well as win people for Jesus Christ through its witness and proclamation of the Gospel.

Grace Lutheran School opened in September 1954, at the American Lutheran Church, then located on Hopkins Street. The Rev. Paul Geiger was the principal, and the original teachers were Ruth Burgum (Kindergarten), Dorothy Geiger (Grade 1), and Margaret Schulz (Grades 2-6).

In January 1955, Mrs. Schulz resigned and Myrtle McCarty replaced her.

In September 1955, the school was moved to 1250 Belvin Street. Transportation was provided, and a cafeteria was begun. In 1956, the school became affiliated with the Lutheran Church-Missouri Synod, and a church was organized at the site. The first worship services were conducted in December, 1956.

In addition to the original teachers listed above, several others taught at Grace Lutheran School, including: Eugene Schulle, Tommye Becker, and Berniece Mauldin. During the 19 years of its existence at 1250 Belvin, the school operated its own cafeteria, operated by Alice Meierant, Margaret Elson, Bernyce Tieken, and Elva Kutscher.

During the twenty years of the school's existence, it was expanded to include grades 7 and 8. Grace Lutheran School was highly regarded throughout the San Marcos community. Many non-Lutherans attended the school throughout its history. Peak attendance reached about 120 students.

After 20 years of operation, the school closed in 1974. This decision was reached after considering many factors, such as the beginning of free Kindergarten in the public school district, rising fuel and food prices, and the aging of the school buildings and buses. After prayerful consideration, the school closed in May 1974.