A third type of gospel music that is not as well known as southern or urban gospel is blue grass gospel. It is hard to say if southern gospel is similar to bluegrass, or if it is bluegrass gospel music that is similar to southern gospel. However, there are certain bluegrass instruments such as the banjo that have been incorporated into Southern gospel music.

Bluegrass gospel music does have some similarities to southern gospel music. They are both considered music of the “South.” It is believed that bluegrass gospel music was started in the 1800s. It has the same trio or quartet singers as in Southern gospel music. However, the music is not as loud as urban gospel, but rather the instruments are quietly playing in the background. In the same manner as southern gospel, the quartet might sing acapella. However, the sound and tone is different than what would be sung by a barbershop quartet.

Quite a number of popular secular bluegrass singers have also sung bluegrass gospel songs. For example, Doyle Lawson is a popular band that also sings secular and bluegrass gospel music. An example of a bluegrass gospel group is “The Isaacs.” This group consisting of mother, daughter and son have created music since 1994.

To receive a proper understanding of bluegrass 'gospel' music, just think of it as bluegrass music that has Christian lyrics. During the Grammy Awards, the Grammy is won for the “Best Southern, Country or Bluegrass Gospel Album”. The most recent winner was "Diamond Rio". This group launched the album "The Reason" in 2009, which won them the award.