Reportedly born on a plantation in Georgia, Baker began his career in 1899 as an assistant to Father Jehovia (Samuel Morris), the founder of an independent religious group. During his early adult years, Baker was influenced by Christian Science and New Thought. In 1912 he left Father Jehovia and emerged several years later as the leader of what would become the Peace Mission movement. He settled first in the New York City borough of Brooklyn and then in Sayville, New York, an all-white community on Long Island, where he lived quietly during the 1920s. His following grew, and in 1931, when his Sayville neighbors complained about the growing attendance at meetings in his home, Father Divine was arrested and incarcerated for 30 days. When the judge who sentenced him died two days after the sentencing, Father Divine attributed the event to supernatural intervention. His movement commemorates this event by annually publishing accounts of "divine retribution" visited on wrongdoers.

In 1933 Father Divine and his followers left Sayville for Harlem, where he became one of the most flamboyant leaders of the Depression era. There he opened the first of his Heavens, the residential hotels where his teachings were practiced and where his followers could obtain food, shelter, and job opportunites, as well as spiritual and physical healing.

The movement, whose membership numbered in the tens of thousands at its height during the Great Depression, builds on the principles of Americanism, brotherhood, Christianity, democracy, and Judaism, with the understanding that all “true” religions teach the same basic truths. Members are taught not to discriminate by race, religion, or colour, and they live communally as brothers and sisters. Father Divine's teachings were codified in 1936 in the “Righteous Government Platform,” which called for an end to segregation, lynching, and capital punishment. Movement members refrain from using tobacco, alcohol, narcotics, and vulgar language, and they are celibate. Moreover, members attempt to embody virtue, honesty, and truth. The movement's teachings also demand “a righteous wage in exchange for a full day's work.” Members refuse to accumulate debt, and they possess neither credit nor life insurance.

During the Depression residents of the Heavens paid the minimal fee of 15 cents for meals and a dollar per week for sleeping quarters, a practice that allowed them to maintain their sense of dignity. In the opinion of many, Father Divine affirmed, amid the poverty of the Depression, the abundance of God with the free lavish banquets he held daily.

Heavens were opened across North America as well as in Europe, and, although most of its adherents were African Americans, the movement also attracted many whites (approximately one-fourth of its membership). The Heavens and related businesses brought in millions of dollars in revenue for the Peace Mission. Their success, however, also brought accusations of racketeering against Father Divine that, like the allegations of child abuse that were made against the movement, proved to be unfounded.

In 1942 Father Divine moved to suburban Philadelphia, in part to avoid paying a financial judgment in a suit brought by a former movement member. Four years later he married Edna Rose Ritchings, a Canadian member who, as Mother Divine, succeeded her husband as the movement's leader in 1965. The movement's membership has declined dramatically, however, not least because of the movement's strict dedication to celibacy.

Once dismissed as another cult leader, Father Divine was recognized in the late 20th century as an important social reformer. In the 1930s he was a champion of racial equality and an advocate of the economic self-sufficiency for African Americans that found broad acceptance only with the Civil Rights Movement.