Stewart Street Baptist Chapel had its beginning in 1954. In the spring of that year, under the leadership of Rev. John Phillips, the First Baptist Church of Carmi purchased an empty store building on Stewart Street Road and started an extension Sunday School. After the brotherhood of the First Baptist Church had remodeled and redecorated the building, Sunday School was held for the first time on Sunday, May 23, 1954 with a charter enrollment of 27. As time progressed the church experienced steady growth and in 1961 a new wing was added to the original building.
In 1962, Bill A. Carter became the first pastor of Stewart Street Baptist Chapel. With the addition of a full-time pastor, the services of the church were expanded to include both Sunday morning and evening services, Wednesday night services, and Women's Missionary Union.
Finally, on July 14, 1968 services of constitution were held at the Chapel. Charles Hortin and Donald Campbell, both from the First Baptist Church, served as moderator and clerk respectively, both signing the original constitution and By-Laws of Stewart Street Baptist Church.