In January 1855 the old Churchyard beside the Church was declared full and was closed. A Burial Board had been set up and decided on a new site in Clay Lane, just outside the village. This was purchased from the Priory Estate.
The Bishop (of Rochester) insisted on two totally separate parts to the new cemetery, a chapel, mortuary and land for the Anglicans, a chapel and land for the Non-conformists (Dissenters). The Anglican Bishop also required the two parts to be walled and fenced off “so there would be no intrusion or nuisance from that other part”.
By 1920 it was necessary to expand the cemetery and further land was purchased from Mrs Cowley for £200. This land was eventually consecrated in 1926. Four years later part of the south west corner of the cemetery was sold to Essex County Council to construct the Bypass Road.
During World War Two both of the Chapels were damaged by enemy action.
In 1988 the Bishop of Colchester consecrated the whole site bringing an end to the Anglican / Dissenters divide.
The former Non-Conformist (Dissenters) Chapel now houses the St Osyth Museum / Archive.