The first Mass was celebrated on the First Sunday of Advent, November 27, 1966, at temporary “St. Thrifty’s” in the Palos Verdes Shopping Center. Church construction began in 1970 and the first Mass celebrated in the church took place on September 11, 1971. Father Joseph F. Keaveny was the first pastor at St. Stephen. The first organized program in the parish was the Religious Education Program for elementary and junior high students. 300 children met in 29 homes around the parish beginning in September 1966.
The Harry B. Morrison Parish Center was constructed in 2001 and dedicated in 2002 by Bishop John S. Cummins. Church renovations during 2003-2006 included a new organ, tile, carpet, and landscaping.
After a successful Capital Campaign, a new roof was installed in 2008. A new Baptismal Font was designed and installed in 2009, and hand rails providing a safer access to the Sanctuary were added in 2011. An AT&T cell tower providing the Parish with additional income was added in 2012.