Located in the heart of historic Harmony Pennsylvania, Grace Church traces its roots to the settling of the town in 1804 by the Harmony Society, a group of German immigrants under the leadership of George Rapp who came to America seeking greater freedom of worship. A community was formed based on the principles of Acts 4:32. The original meetinghouse was built in 1808. The church and community grew and prospered. Eventually they moved to found the town of New Harmony in Indiana, circa 1814. The Harmony Society then returned to the area in 1825, founding the town of Economy on the Ohio River.

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A German Evangelical and Reformed congregation was organized by subsequent immigrants in Harmony in 1826 using the meetinghouse built by the Harmonists. Regular services have been held since 1826 led by twenty-five different pastors. A new sanctuary was constructed in 1929 to accommodate the growth of the congregation. The old meetinghouse was remodeled for Sunday School use.

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When the German Evangelical and Reformed denomination merged with the United Church of Christ in 1969, Grace Church chose to withdraw from the denomination. It became an independent church governed by its own constitution, by-laws, and doctrinal statement.

A youth and recreation center was dedicated in December of 1993. In March of 2002, major renovations were completed to the Sunday School department.

Presently Grace Church provides a nurturing fellowship for 200+ families and 400+ members from various backgrounds and all walks of life.