Siloam Methodist Church was founded in 1852 when part of the congregation split from Bethel Methodist Episcopal Church (now known as Chester Bethel United Methodist Church) due to a dispute over the pastor buying hymnals and organizing a choir. The former congregation saw it as a return to the practices of the Church of England which they had split from in 1795. While unrelated to the schism, the Methodists were against the use of instrumental music in the church while the Church of England incorporated into their services.

Samuel Hanby and Samuel Hance donated land and $2,250 were raised for a stone edifice to be built. Services were held in the basement while the main body of the church was being completed. The first service to be held in the completed church was on September 24, 1854 with Reverend Hurey and Reverend Andrew Manship, of Philadelphia, conducting the dedication services. The other $2,250 for the new church was raised that day through subscriptions. Siloam Methodist Church joined the Mount Lebanon circuit, and Reverend William H. Burrell was established as its first pastor.

Over the next two decades, Siloam Methodist Church which lead to the need for a mission church. The congregation purchased Chelsea Chapel on Concord Road in Chelsea, Pennsylvania. The chapel was dedicated on July 22, 1871. Services were held there until the 1920s, and the chapel was sold as a private residence. On October 7, 1930, twelve unknown bodies buried at Chelsea Chapel were exhumed and reinterred in the graveyard of Siloam Methodist Church.

At some point after 1968, Siloam Methodist Church was renamed Siloam United Methodist Church after the merging of the Evangelical United Brethren Church and the Methodist Church which itself was a merger between the Methodist Episcopal Church, the Methodist Episcopal Church South, and the Methodist Protestant Church in 1939. The cemetery is still called Siloam Methodist Cemetery.