St. Stephen's began in 1912, as a branch of St. Matthew's, to provide for the rapidly expanding eastern side of the parish. A block of land was purchased bordering Hills Road, Warden Street and Slater Street.
The Mission Hall in Edward Avenue was moved to the site as the new church. It still stands today in Hills Road (now a glazier).
Services later moved to the current site on the corner of Shirley Road and Emmett Street. The Marsden Centre was added beside the church in 1962. It went through major additions again in the late 1990's to allow for a large kitchen and more office space and a large foyer connecting it to the church.
It has always been a community church. A church day school employing two teachers was in place when it began and strong links were forged with the then
St. Saviour's home for children in Stapletons Road. The home then became a home for the elderly in 1956 and the parish continues to offer pastoral care and chaplaincy work in the renamed Churchill Courts.