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Fifty years ago Grace Creche and Kindergarten was founded and grew into one of the largest and best equipped early childhood centres in this State. Parents, impressed by the effects of this centre, began a school, and eventually asked the Church to become involved. Grace Lutheran Primary School was the result.

Soon after Grace Lutheran Primary School was established, a small group of far-sighted parents formed a public committee and began to work toward the establishment of a secondary College. The group encountered many obstacles but eventually succeeded in getting the support of the Lutheran Church and Peninsula community. Conditional approval to commence a Secondary Department was given in 1977, with full support for a College on a separate site following in 1979.

The first students (15) of ºÚÁÏÍø commenced their studies in February 1978 with Mr Viv Kuhl, retired Deputy Principal, as the first full-time teacher. During 1978 and 1979, the College operated in classrooms owned by Grace Lutheran Primary School, Maine Road, Clontarf. In 1980, the College moved to its present site on Anzac Avenue in Rothwell with Mr Fred Stolz as the first Headmaster, five teachers and 55 students.

Land acquisitions over the years have increased the size of the site from the initial 14 acres to the present 40 acres (16.3 hectares).

Since then, there has been a rapid growth in numbers, facilities and courses offered. The school now has an enrolment of approximately 1500 students across two campuses. Many Grace graduates are continuing their studies satisfactorily at Universities, TAFE and other similar tertiary institutions, while others are gainfully employed.

After consultation with St Paul’s Lutheran Primary School and congregation, the College opened a second campus in 2008. It is adjacent to the Primary School and commenced with Years 7 and 8. Each year another year level has been added, with the first Year 12s graduating in 2012 with excellent results.

At the same time at the Rothwell Campus, Grace also enrolled Year 7 students. Therefore the school is now organised into Middle School (Years 7-9) and Senior School (Years 10-12). The Year 7 program has been enthusiastically supported by students, parents and staff. It provides an effective transition to secondary schooling with a strong emphasis on pastoral care from core teachers, and diverse, engaging curricular experiences.

Apart from Grace Lutheran Primary School, Grace has two other partner primary schools, Living Faith Lutheran Primary School at Murrumba Downs and St Paul's Lutheran Primary School at Caboolture.