In 1917, the Puget Mill Company established the community of Alderwood Manor. The community became the home to one of the largest experimental farms for egg production on the West coast. Fifty years later the Boeing Company chose to build its new plant just north of the community. With a large and rapid population growth, a group of like-minded believers banded together to establish a Baptist church under the leadership of Pastor Duane Wells. In February 1966, two chicken coops were rented from Mr. & Mrs. Tom Knorr. These coops were outfitted for church services. Eighteen people were present for the first service of the church. In the fall of 1972, the church moved into a new building, on acreage located just across the street; it was renamed Emmanuel Baptist Church. In 1985, due to declining numbers, the church closed. The church was re-established as Grace Baptist Church in 1986/7.
Over the last 30 years the church has upgraded its facilities and had a variety of projects and programs to share the gospel with others. The Bible remains the at the center of church life. God has blessed with many souls saved and many Christians strengthened for Christian service. Mrs. Knorr is still an active and dedicated member of the church, and the only one of the original founding members still living. With the passing years, the cities of Lynnwood and Mill Creek have swallowed up most of the Alderwood Manor area. While society, character, and the direction of the nation have changed over the years, the purpose and mission of the church to share the gospel of Christ Jesus, with the community, has not.