Grace Chapel began in August of 1951 when a group of believers under the leadership of Rev. Donald Martin determined to establish a sound Bible preaching church in the Shamokin community.
The Charter was signed by the church on August 27, 1951 and approved by the Court of Common Pleas on September 10th, 1951. This newly formed group purchased the old Lafayette School building located at 1300 Spruce Street in Shamokin for $3,800.00. The facility was remodeled to accommodate a church ministry and served that purpose until 1964 when the church purchased the Overlook School for $3,000.00 and moved the ministry to its present location in Overlook.
The school building was built in the early 1900's and needed to be remodeled. On September 27, 1964 the building was officially dedicated to the Lord. The parsonage was built in 1972 and the new Sanctuary was built adjoining the existing building in 1975.
Throughout its history Grace Chapel has had a strong emphasis on missions and active youth and children's ministries.