In 1974 the Manitoba-Saskatchewan District of The Lutheran Church–Missouri Synod^* and St. Paul's Lutheran Church in Saskatoon developed plans to begin a congregation in the Sutherland area.  Assisted by several students and congregational members, Rev. Ted Dressler surveyed the area, started a Sunday School, and held a Bible class and adult confirmation class.  Alan Dick, Charles Keogh and Steve Eggers, vicars at St. Paul's, continued this work and in 1979 worship services, led by Vicar Eggers, began in Sutherland Public School.  In 1984 the congregation moved to Sutherland Memorial Hall.

On October 5, 1980 Rev. Wayne Geick was installed as the first resident pastor, and Grace Lutheran Church became a member of The Lutheran Church–Missouri Synod at the District Convention in 1982. 

Pastor Geick left in 1984, and Rev. Terry Richardson was installed on January 12, 1986.  Later in 1986 land was purchased and the present Church was built with assistance from Labourers for Christ–their first Canadian project.  The building was dedicated on January 25, 1987. 

Pastor Richardson left in January 1990.  Rev. Brian Burt was installed in the fall of 1990 and served Grace until September 30, 2000. 

Rev. Howard Ulmer assisted the congregation as interim pastor from October 2000 until August 2003. 

In May 2003, James Dimitroff, newly graduated from Concordia Lutheran Seminary in  Edmonton, AB was issued a Call to Grace.  He was ordained and installed on August 10, 2003.  Pastor Dimitroff retired at the end of June 2012.

When Pastor Dimitroff announced his pending retirement in March 2012, a call meeting was held and it was decided to request a candidate from one of the 2012 seminary graduates.  Rodney Parker was selected by the LCC Council of Presidents.  He was ordained and installed on July 15, 2012. Under Rev. Parker's guidance, the congregation continues to proclaim the Gospel of Jesus Christ to the community through regular worship services, Sunday School, Bible studies and various other activities.

Grace Lutheran Church is a member of the Central District of Lutheran Church–Canada.

^*Lutheran Church–Canada (LCC) was founded in 1988 when the Canadian congregations of St. Louis, Missouri-based The Lutheran Church–Missouri Synod formed an autonomous Canadian church and three districts:  the Alberta-British Columbia District, with offices in Edmonton, Alberta; Central District, with offices in Regina, Saskatchewan; and East District, with offices in Kitchener, Ontario.  LCC retains close ties with the LCMS and other Lutheran church bodies around the world which follow the Biblically-based Lutheran Confessions.