Cappagh was part of the old tuath of Nantenan, in the territory of Uí Fidgeinte, from the 4th century onwards. Stonehall used to be in the parish of Cappagh. Cappagh derives its name from An Ceapach, meaning 'the tillage plot'.
Dermod MacEinery built the original Cappagh castle in the reign of King John. However, this castle no longer remains. Cappagh house is believed to be one of the oldest residences in Ireland. The noted Limerick historian Canon John Begley was parish priest in Cappagh from 1915 to 1917.
In 1840 Fr Foley, who had retired for a time from his parish of Stonehall now returned and for the more efficient working of the district Stonehall was separated from Nantenan or Cappagh since the new chapel was in that part of the parish.