In 1956, a committee from the St. Louis Archdiocese became aware that Sacred Heart Parish in Crystal City would need assistance in serving the people of both Festus and Crystal City. Therefore, a tract of land was purchased for a new church to be called the Church of Our Lady.
Rev. Charles Huelster was appointed as the first pastor, and, on November 12, 1956, ground was broken for a building that would include a church, six classrooms, kitchen, and a temporary convent. During construction, the newly formed parish of roughly two-hundred sixty-five families celebrated Mass in the rectory basement at 501 Edgewood Lane (prior to this, Mass was held for a brief period at the American Legion Hall). The residence at the Edgewood address was used only until a small farmhouse that was purchased with the property could be renovated for a rectory.
On February 28, 1958, classes began at Our Lady School. In 1976, four additional classrooms were added onto the school, including kindergarten.