The Reverends Omer Allred and Charlie Wright moved into the Grimsley, TN community in 1945. There was not a Freewill Baptist Church in the community, and having been members and ministers of a Freewill Baptist Church in the Manson community, they decided to organize one.

Since there was no building, a small group of Christian people came together in the home of Rev. Charlie Wright and organized a church on December 5, 1948. Rev. Omer Allred, Rev. Charlie Wright, Rev. Hobert Tinch, Rev. Verley Phillips, and Deacon W.C. Whited were present for the meeting. The following elections were made that day: Rev. Hobert Tinch, Moderator; Rev. Charlie Wright, Clerk; Rev. Omer Allred, Treasurer; and Bro. Tom Smith and Bro. George Bledsoe, Deacons.

The Mt. Carmel Freewill Baptist Church was named by Bro. Omer Allred. An invitation was given for membership as charter members, and the following were received: Rev. Charlie Wright, Sister Lydia Wright, Rev. Omer Allred, Sister Martha Allred, Sister Juanita Allred, Sister Mary Jane Allred, Sister Minnie Conatser, Brother George Bledsoe, and Brother Tom Smith.

Rev. Hobert Tinch was elected as the first pastor. The Mt. Carmel Church joined the Eastern Division Stone Association of Freewill Baptists at the Associational meeting in October 1949.

Rev. Omer Allred and Rev. Charlie Wright provided property for the church and cemetery. They used a crosscut saw and began to cut timber off their land to build the church building. Many materials were donated for the building, as well as time and labor. The church services were held in the homes of Rev. Omer Allred and Rev. Charlie Wright until the church was finished. The original building was completed in 1949, and additions were made over the following years. A fellowship building was built in 1985. A new sanctuary was built and attached to the existing building in 2001, and the fellowship building was extended and remodeled in 2011.