In 1902 Karlsruhe became a "mission" church to Fulda, which had a resident priest, Father Thuille. He started to build a church on 10 acres of land donated northeast of the present townsite. Father Bleil, who served Karlsruhe from 1905-1908 was the first resident priest for Sts. Peter & Paul mission. 
In 1905 a church was built on donated land northeast of Karlsruhe. In 1908, a pastor's home was built. This church was then moved into Karlsruhe in 1915.  
Sts. Peter & Paul was built in 1925 after finding that the old church was getting to crowded.