In 1883, J. M. Baker was assigned by the Conference to the Seymour Mission. Baker, a young Methodist preacher found a small settlement of Methodist people in what is now called Olney. Soon he found that Mrs. Robert Neelley, Mr. & Mrs. J. M. Donnell, Mr. & Mrs. L. Payne, Mr. and Mrs. William Henry Keen were Methodists, so he set out to organize a church. Linus Parker was Conference Bishop in 1883 and Olney was assigned to the Eastland District under Superintendent James K. Lane.

In 1884 Mr. Donnell donated a old time pioneer home which was converted into a church and a school. The church was named Donnell’s Chapel. This little church was taken into the Farmer Circuit, which was joined to the Weatherford District, Northwest Texas Conference in 1886. In 1893, a frame church was built. The first brick church was built in 1920. The current church was built in 1952.