Grace Evangelical Lutheran Church traces its history to work begun in the Boulder area by the Lutheran Church–Missouri Synod in the 1920s. Weekly services in Boulder were inaugurated in October 1924 and the congregation was formally organized in 1937 as a member congregation of the Lutheran Church–Missouri Synod. Its present building at the corner of 13th and Euclid was dedicated in 1949. Throughout the 1950s and 1960s, the growing congregation furthered the mission of Christ by participating in the formation of three different communities of faith: Mt. Zion Lutheran Church in 1956, the University Lutheran Chapel in 1961, and Mt. Hope Lutheran Church in 1966.
In 1963, the Grace facility was expanded by the addition of an education wing, and in 1967, the Grace sanctuary underwent a radical transformation under the direction of noted Boulder architect and Grace member Charles Haertling; the sanctuary’s seating was turned "inward" to face a chancel in the center of the room.
The year 1968 brought the formation of the Grace Lutheran Foundation to manage the congregation’s investments and bequests.
Grace became deeply involved in the issues which gripped the Missouri Synod during the 1970s and chose to continue to support its historic emphases on desire for deeper unity with fellow Christians and support of the church's education and mission endeavors. In 1977, Grace joined the Association of Evangelical Lutheran Churches, the group of moderate congregations from the Missouri Synod. A year later, the congregation was removed from the roster of the Missouri Synod and, in 1987, joined with other Lutheran congregations in North America to form the Evangelical Lutheran Church in America.
The latest modifications to the Grace properties took place in 1994, with a major remodeling of the parking lot entrance, addition of facilities to meet the needs of those physically challenged, and a redecoration of the Fellowship Hall.
In 1998, Grace welcomed the ELCA’s Lutheran Campus Ministry at the University of Colorado onto the Grace campus. LCM offices are located at Luther House, 1030 12th Street, which was purchased by the Grace Foundation in 1996, and the Christus Rex student congregation worships in the Grace sanctuary.
Throughout its history, Grace has been served by six pastors: