The beginnings of Grace were prompted in the early 1930s by the needs of Lutheran students at Oregon State University, then known as Oregon Agricultural College. Lutheran townspeople invited Lutheran students to their homes for bible study, fellowship and food. A 1941 survey by students, directed by John Lawry of the National Lutheran Council, led to the first Lutheran service, conducted in a home close to campus. A variety of synods were represented in the area, but the Augustana Lutheran Church was in the best position to support the new congregation. In 1942 the Rev. Lael Westberg became not only the first pastor of the congregation, but also Lutheran Student Director. The congregation grew steadily, meeting first in a mortuary, then on campus and finally in the Corvallis Women’s Club Building. The real need was for a church home. Four lots had been purchased, and by 1947 an army chapel from nearby Camp Adair was purchased. It was relocated in Corvallis and became the first home of the congregation. Over the years the chapel was renovated and remodeled to serve the needs of a growing congregation. In 1967 the church broke ground for the present house of worship and educational facility. The new church was dedicated on May 5, 1968. Its continuing growth has made it one of the larger congregation of the Pacific Northwest Synod.
From the guide to the Grace Lutheran Church, Corvallis, Oregon, Records, 1942-2012, (Pacific Lutheran University)