Grace Evangelical Lutheran Church is located at 203 South Washington Street in Castalia, Ohio.  Grace began in 1901 with services being held in the old public school by the Rev. Theodore J. C. Stellhorn of Zion Lutheran in Sandusky.  In September, 1901, Rev. Philip Ried was called as the first pastor of Grace.  The first catechism class of 16 was confirmed on April 10, 1904. The church constitution was adopted in 1907.  A building fund for a new church was started in 1905 with the cornerstone being laid on October 2, 1910.  The church was dedicated on August 27, 1911.  In 1912 the Rev. A. C. Berlin accepted a call to Grace and remained until 1919.  The Rev. N. S. Luz was installed in 1919, but resigned in 1923 due to ill health.  The Rev. John Jennings became pastor in 1924 and remained until 1943 at which time the Rev. C. J. Renner became the 5th pastor at Grace.  In early 1952 a new building program was authorized.  Church services were held in the Margaretta High School gymnasium during the construction of the new front and chancel areas.  Dedication was in November of 1955.

In 1959 the Rev. Kurt Meuschke was installed, and a new parsonage was purchased.  A new educational unit was dedicated on September 17, 1967.  In 1968 the Rev. James Darnell was called, and a new library was dedicated.  In 1979 the Rev. Edward Winter was installed.  The same year, the carillon system was dedicated and this system continues to send beautiful tones over the village of Castalia.  In December, 1986, the Rev. Douglas Haryu was installed. Pastor Winter retired in May of 1999 and Pastor Haryu remained until 2004.  In 2006, the Rev. Kathleen Suggitt was called and installed, and is Grace’s current pastor.  In 2011 the need for a new narthex was identified.  A building project was initiated and the new addition dedicated on December 10, 2012.