Chambersburg, originally a frontier settlement, realized in the earlier part of the nineteenth century that civic development and organization had become necessary. The little cemeteries around the local churches found themselves in the path of the growing town and so a group of members of the local lodge of the "I.O.OF." (Independent Order of Odd Fellows) organized the Cedar Grove Cemetery Association Inc., which was incorporated on January 22, 1855. 

Cedar Grove Cemetery has had two mass re-interments and a lesser number of reburials from other cemeteries in the area which have been closed or otherwise reused for church expansion, clearance for street improvement and such.

During the Civil War, Chambersburg's location as a focal point of major roads going North-to-South and East-to-West, made it a convenient location for supply depots, encampment areas, and hospitals. There were at least three major Army hospitals here, during and after the battles at Gettysburg, Antietam, and the lesser-known Battle of Monterrey Pass at Blue Ridge Summit. There are two close rows of graves in Cedar Grove Cemetery, many marked simply "U.S. Soldier". There are also two Confederate burials there. 

Veterans of the armed services account for over 650 of the burials: 2 Indian Wars veterans, 5 War of 1812, two Confederate (C.S.A.), 495 Union (G.A.R.), 2 Korean War, 36 Spanish American War, 64 WWI, and 39 WWII. (These are accounted only from the cemetery's burial register, though there are likely many more not listed there. Count as of Sept 2024)

Cedar Grove Cemetery is maintained by the same corporation which operates the Norland Cemetery on Molly Pitcher Highway, north of Chambersburg.