It is believed the Bob Holder family lost a son to death, probably in 1886 and this was the first grave in Bethel Cemetery. The oldest marked grave is thought to have been the second grave and is that of W. E. Mullinax, infant son of John and Carrie Mullinax. This is believed to have been on January 8, 1887.
The original 3 acres for the cemetery was given by John C. and Martha Terrell “in consideration of the love and affection we have for the Methodist Church at Bethel”, September 15, 1892. The Bethel Methodist Church ceased to be active sometime in 1948 or 1949. Permission was asked and granted by letter from North Texas Conference, Sulphur Springs District, January 8, 1950, to repair the church building and further use it as a chapel for funeral and memorial services.
In March 1967 a one acre tract was purchased from Solon and Mary King and is located along the East side of the original 3 acres. A Trust was unanimously voted June 4, 1967 – Bethel Cemetery Trust – whereby money could be given to build this fund to such an amount that the income from it would furnish perpetual care for the operation and maintenance of Bethel Cemetery.
On July 12, 1995 the First United Methodist Church of Mt. Vernon, Texas deeded the Bethel church building and 1.5 acres to the Bethel Cemetery Association.
In June, 1991 15 acres was purchased from Tom King and Solon King Jr. On February 14, 1992, 6.84 acres was sold to Billy Rhoades leaving the Cemetery a total of 8.16 acres.
On August 8, 1997 the name was officially changed to Bethel Cemetery of Franklin County, Texas.