The priory was founded c.1239 by
Roesia (or Rohesia) de Verdun. The priory was endowed with the manors of
Belton, Leicestershire and "Kirkby in Kesteven" (
Kirkby la Thorpe?), Lincolnshire; as well as the
advowson of the
Church of St John the Baptist, Belton. The priory was unusual in being independent of outside control. The nuns called themselves "the White Nuns of St Augustine", and there is thought to be no other houses of their order in the country. The priory escaped the first wave of
dissolution of the smaller monasteries, but was finally dissolved in October 1538.
After dissolution Following the dissolution, the site was granted to Sir Humphrey Foster who sold it to
John Beaumont, the
Master of the Rolls, in 1539. He converted the priory buildings into a residence which remained within
his family until 1684, when it was bought by Sir Ambrose Phillipps, a wealthy lawyer, who also built nearby
Garendon Hall. Sir Ambrose had most of the buildings pulled down, and by 1730 the remaining buildings were ruinous, with only two sections still roofed. The priory passed through the Phillipps and March families until 1833 when
Charles March-Phillipps gave the priory to his son
Ambrose Lisle March Phillipps, who assumed the surname "De Lisle". Ambrose constructed a new house in the Tudor-gothic style, known as
Grace Dieu Manor, south of the priory ruins. The March Phillipps de Lisle family owned the house until 1933, although their main residence was at the Hall they built at the former
Garendon Abbey. Following the death of two of its heads in quick succession, the family needed to reduce its expenditure and so in 1885 moved out of Garendon and into
Grace Dieu Manor. A return to fortune allowed the family to return to Garendon in 1907. In 1964 Garendon Hall was demolished and the family returned to Grace Dieu for a final time, selling the house within a decade. The manor then became a Catholic school,
Grace Dieu Manor School. In 1972 the family moved to
Quenby Hall, but following the collapse of the family cheese-making business, the family has been forced to offer the Hall for sale (it has been for sale since 2012). The priory buildings still exist as ruins. A conservation project on the remains was completed in 2005. It is managed by the Friends of Grace Dieu Priory, who work together with the Grace Dieu Priory Trust and the Grace Dieu Estate to ensure it stays open to members of the public. In 2024 the
Rosminian Order transferred ownership to the Grace Dieu Priory Trust for a nominal sum. ==Paranormal claims==