Sister Rosa Florence and others attended other local worship services as members of the A.M.E. Society. They saw a need to establish an A.M.E. Church and worship under their own “vine and fig tree.” The movement began and the church has grown to its present status as the third church on the Pensacola District of the West Florida Conference.

The initial membership was six under the pastorate of Rev. J.D. Davenport. The original lots where the church now stands were purchased for $75.00 each, and the third was donated. The funds were raised from the sale of dinners, sandwiches, and pies and donations. The ground breaking ceremony was held in June 1952 with the sermon preached by Rev. Anthony from the First Baptist Church.

Gregg Chapel A.M.E. Church was originally named Dallas Chapel after Bro. Dallas Yates, an original board member. Later Bro. Yates felt he was unworthy for the church to be named in his honor and it was at this time that Bishop John A. Gregg consented to have the church named after him.