The Lawrence Mennonite Fellowship was started in the early 1970s as gatherings held in homes on alternate Sunday afternoons, organized by John Janzen. Discussions were held by various University of Kansas (KU) history/philosophy graduates and professors.

In the early 1980s, the congregation was funded as a church planting effort by the Western District Conference of the General Conference of the Mennonite Church, and John Lindscheid was hired as the first pastor. The now-named Lawrence Mennonite Fellowship began meeting in the Ecumenical Christian Ministries building on the KU campus in 1983.

Members of the church decided to change the name of the congregation to Peace Mennonite Church (PMC) in the 1990s, and in June 2001, PMC joined the Supportive Communities Network (SCN). Joining this network required the church to begin a process of discernment and education, in which they developed a welcoming statement to affirm lesbian, gay, bisexual, transgender, and queer church members.

In 2006, the congregation purchased its first permanent space in the former Odd Fellows Lodge in North Lawrence. They continue to use this space.