In July of 1953, members of Immanuel Lutheran Church - Deerfield took upon themselves along with assistance from the Kansas District of the LCMS to form a congregation in Ulysses. In October of that year they held their first service with Immanuel's Henry Knoke presiding. Soon thereafter, a constitution was written, a building fund established, and approval from the Synod was given. For the first 25 years of Grace's history it was in partnership with Immanuel sharing thier pastor, Rev. Knoke and Rev. Norman Heironimus. In 1979 Lay Minister Claude Constable served Grace as their first full-time pastor. In that same year the ladies group, Grace Circle was formed. Rev. Donald Neidigk came to serve Grace as a vicar in 1984 and was ordained as Grace's pastor in 1985.
By January 1986 the decision was made to build a new and bigger building. This building is the current home of Grace Lutheran and was built with the support of many members and the Laborers for Christ. The building was dedicated on September 13th, 1987. 1989 had another pastoral change. Pastor Neidigk took a call to Colorado and the congregation extended a call to Rev. Kenneth Haskell. After many years of being served by Pastor Haskell, Pastor Dennis Mason was called in 1998.
In July of 2013, Pastor Patrick Gumz was called and ordained to serve both Grace and Immanuel. Once again the two churches have partnered together to better serve our communities.