In 1873, Methodists in rural Poweshiek County organized the Sunset Church near the present-day site of Guernsey. The first church building for the congregation was constructed at a cost of $1,600 and was dedicated October 26, 1879. The town of Guernsey was platted four years later, and a majority of members desired to establish a presence in the new community. In 1894, the Sunset Church was torn down, with the lumber repurposed for use in construction of a new church building in Guernsey.

The new church in Guernsey was completed in 1894 at a cost of $3,350. Though efforts in 1941 to construct a new building did not materialize, a significant expansion project was completed in 1965. The Guernsey United Methodist Church currently shares a pastor with four other area churches.