The congregation was founded by
Jews of German background. In the spring of 1849 the first Jewish family settled in Honesdale, and by the fall the congregation had been organized. By 1854 the congregation also had a
Hebrew school. Originally Orthodox, the congregation moved rapidly to "Classical Reform". The congregation's first spiritual leader was a Rabbi Kutner. Between 1880 and 1890 many Jewish families left Honesdale. The congregation was able to maintain a full-time local
rabbi until 1891, but could not afford one afterwards. Rabbis (typically student rabbis from the Reform
Hebrew Union College or
Jewish Institute of Religion) would officiate only at
High Holiday and some
festival services. Other services were held on Friday nights, and were lay-led. At the turn of the century and in the early 20th century, Honesdale had two synagogues, Beth Israel and Sherith Israel. Nevertheless, the Jewish community remained small; by 1918 there were only 29 Jews in Honesdale, Beth Israel was the only synagogue, and it had no rabbi. In the 1930s and 1940s an influx of more traditional Jews of
Eastern European backgrounds prompted a slow change to more traditional practices (though still Reform). By 1942, the Jewish population of Honesdale had reached around 75. The bulk of the costs associated with running the synagogue were underwritten by Honesdale's
Katz Underwear Company, with additional funds raised by the Temple Sisterhood. From the late 1930s to the early 1950s the congregation was served by a series of short-tenured rabbis, typically serving for one year or less. These included Joseph Friedman (1939), Baruch Braunstein (1940–1942), Hebrew Weiner (1943–1944), Rafield Helman (1945), Jay Robert Brinkman (1946), Morris Friedman (1947), Jerome Spivak (1948), Bernard Bamburger (1949), Samuel Volkman (1949), Abraham Granison (1949), Bernard Perlmutter (1950), Harold Spevak (1951), Bernard Zlotovitz (1952), Kenneth Rivkin (1953), Jerome Davidson (1954), and Julius Kravitz (1958). Beth Israel had no rabbi in the 1960s, and in the 1970s was served by Harvey Rosenfeld (1970–1971), Lewis Bogage (1972–1978), and Leonard Troop (1978). Bogage shared the duties with Allan L. Smith. Since 1979, Smith has served as rabbi on his own. The congregation celebrated its 125th anniversary in 1974, with rabbi and historian
Jacob Rader Marcus as speaker. Rabbi Smith retired in 2015. Rabbi Elliott Kleinman has served the congregation from that time to the present. ==Building==