Bethlehem Lutheran was organized on September 9, 1860 by German settlers. Earliest burial records indicate that most early members were from Westphalia Province, Prussia, which is now in the German state of North Rhine-Westphalia. The church was first served by a Missouri Synod pastor in 1870. On December 25, 1881, it was voted to join the Missouri Synod, and official acceptance was on January 12, 1882.
The first building, constructed in 1860, served as the church, school and parsonage. The present church building was built in 1893 at a total cost of $2466. The original 75 foot tall steeple was replaced after being destroyed by lightning. In 1952, the present parish hall was added.
At this time, Bethlehem is the third oldest, active Missouri Synod Church in Texas.