Matagorda County was organized in 1837, and two years later residents established the Matagorda Methodist Church. Decades later, in 1903, a group of people met in a one-room schoolhouse and organized the First Methodist Church of Palacios. The congregation met in the schoolhouse until 1905.
Church members built Pioneer Hall, a place of worship for all of Palacios. They soon added a parsonage and, in 1912, built a larger sancturary. Although Hurricane Carla damaged much of the church property in 1961, the congregation has rebuilt and added new buildings and services, including education programs and childcare, as well as youth and seniors activities.
More than a century after it began, the First United Methodist Church of Palacios continues to play an important role in the lives of its members and its community.