Matagorda County was organized in 1837, and two years later area residents established the Matagorda Methodist Church. In 1903, a group met in a one-room schoolhouse and organized the First Methodist Church of Palacios under the leadership of the Rev. W.H. Nelson, continuing to meet there until 1905. Church members then built Pioneer Hall as a place of worship for all of Palacios, soon added a parsonage, and in 1912 built a larger sanctuary next to Pioneer Hall. The congregation also developed programs including the Epworth League youth group and a choir, and members supported the church by donating a bell, communion furnishings, and offerings. During World War II, when Palacios grew as the military expanded its presence at Camp Hulen, the church offered its facilities for Red Cross work, members worked at the U.S.O., and rented rooms to military families. Membership later increased and new programs began, including the Methodist Men and Rebecca Circle. Although Hurricane Carla damaged much of the church property in 1961, the congregation continued adding new buildings and services, including education programs, childcare, and youth and senior activities, and it has remained an important part of the lives of its members and the community for more than a century.