Grace Baptist Church history dates back to 1869, when Swedish immigrants arrived to settle in the area circling out from the intersection of Highway 70 and Williams Road. The Wood River Swedish Baptist Church was incorporated August 15, 1869 with their building ready for Christmas, 1870. It was built at the Highway 70 and Williams Road intersection and later moved one mile north.
In 1871 several members who lived in the Village of Grantsburg, began a Sunday School. On September 24, 1884 the First Swedish Baptist Church of Grantsburg was organized and in 1887 the church was built on West Wisconsin Avenue. The two congregations continued to cooperate, especially in the area of missions. As the years passed, other nationalities became members so both churches dropped the name Swedish from their names. The women of the churches had their Ladies Aid and Mission Societies meeting where many of the Swedish customs and cuisine were passed down through the decades.
In the early 1960's a merger began with the two churches and plans were made for a new building to be built near the Village of Grantsburg. The new combined congregations chose the name Grace Baptist Church and incorporated May 13, 1964. The site for the new building was at the intersection of Highway 70 and Robert Street. The first service at Grace was held on June 15, 1969. An addition was completed in July, 1995.
The original log Church built by the Wood River congregation was the first Swedish Baptist Church built in Wisconsin and first church building in Burnett and Polk counties. This building is now located at Wood Lake Bible Camp on Assembly Road.