Located in southwestern Fayette County, the Muldoon area was first settled in the 1830s when Father Miguel Muldoon acquired a Spanish land grant from Stephen F. Austin. The area continued to grow and attract settlers throughout the 19th century. In 1871, Jesse Sullivan, J.R. Allen, Duncan Carmichael and J.T. Burleson, trustees for the Methodist Episcopal Church, purchased six acres of land from John Sauer for a church and burial ground.

The cemetery is approximately two miles northwest of Muldoon on "Muldoon Cemetery Lane" which intersects with Texas Farm Road 2237. It is adjacent to the Henson Cemetery, which is a principal African-American cemetery in the Muldoon area.

The first burial in the cemetery was for Dr. John B. Floyd (1842-1875), a doctor originally from St. Martins, New Brunswick. The second burial is that of James Carrel Bell (1820-1880), a Texas Revolutionary War Veteran. Battle of San Jacinto veteran Simon Peter Ford (1816-1898) is also buried here. Duncan Carmichael (1827-1886), a Civil War veteran, is also buried here aside many other veterans from the Civil War onward who served their country.

Other burials include pioneer families, pastors, educators and business leaders. One burial of note is that of James Chambers Coulson (1857-1909), an English immigrant who became an expert stonemason and managed the Muldoon Rock Quarries that supplied the "Muldoon Blue" sandstone for many local landmarks, the Galveston Seawall and jetties, and buildings across Texas.

In the center of the cemetery is the old Union Hill Baptist Church, moved to the cemetery in the 1940s and now used for funerals and meetings. A cemetery association was established in the 1940s to care for the cemetery, a tangible reminder and connection to the area's rich history. (2016) (Marker No. 18612)