The Chapel of Our Lady of Walsingham, on the west side of the transept, is a nationally known shrine that was inspired by a visit of Fr. Curtiss to England. The shrine was set apart in 1930 and consecrated in 1931. On the altar, which was hand-carved by C.E. Rudolph, a longtime member of the parish and an intimate friend of Fr. Blow, is the replica of the original statue of Our Lady of Walsingham in Norfolk, England. It is a most lovely piece of carving and is believed to be the first such shrine set up in any parish church in this country. For twenty-three years The Lady Shrine at Grace Church has inspired groups from all over the nation to make the annual pilgrimage.
In the middle of the floor is a small wedge-shaped stone brought by Fr. Curtiss from St. Mary's Chapel in Glastonbury, England.The five paintings above the altar represent the Blessed Virgin enthroned and attended by Ss. Agnes and Cecilia and Angels. The paintings were created by T. Noyes Lewis of London, a personal friend of Fr. Curtiss.