The Evangelical Covenant Church's background is in free-church Swedish immigrants known as Mission Friends who had broken off from the Lutheran Church of Sweden. They formed a mission society and in the 1880s, meetings were held to determine whether or not to form a union of mission churches. The majority joined together, forming the Swedish Evangelical Mission Covenant of America (now ECC) on February 20, 1885, in Chicago, Illinois. A smaller percentage known as the Free Friends remained independent and became the Swedish Evangelical Free Church, now part of the Evangelical Free Church of America.
A pietistic religious awakening had swept through Sweden around the middle of the 19th century. Before leaving their homeland some Swedes met in people's homes, as they felt the state church was becoming overly powerful. There they conducted private services (conventicles), including hymn singing accompanied by guitars, and read scripture from their Bibles, but they were sometimes interrupted by church officials, who wanted to keep them in congregations at church. The Conventicle Act, in effect until 1858, prevented them from holding private religious gatherings. This reinforced their yearning to be in a church where they could worship freely. With this awakening and reformation came the Swedish Mission Church in 1878. The state church discouraged the gathering of these believers.
People from this movement emigrated to North America, where they formed the Swedish Evangelical Mission Covenant of America. Early leaders and influences included Carl August Björk (1837–1916) Paul Petter Waldenström (1838–1917) and David Nyvall (1863–1946), among others. They desired to create a voluntary "covenant of churches" that were committed to sharing the Gospel of Jesus, as well as provide means for ministerial training. The name was changed to the Evangelical Covenant Church of America in 1954. The "of America" was eventually abandoned because the denomination includes a Canadian conference
