Opened on February 10, 1933, the Alwi Mosque was named in honor of Raja Syed Alwi Ibni Almarhum Tuan Syed Saffi Jamalullail, the ruler of Perlis at the time. Its construction is a legendary tale of community spirit; the funds (totaling RM64,684) were raised entirely through the contributions of local government officials, Muslim traders, and the public over a decade starting in the 1920s.
The site itself holds a colorful past—it was reportedly built on a location once used for illegal bullfighting and gambling, chosen specifically to cleanse the area and promote religious education. Perhaps most remarkable is its construction technique: before the widespread use of modern cement, builders used a traditional mixture of sand, rocks, egg whites, honey, and sugarcane sap as a natural adhesive to bond the stone walls. Recognizing its deep cultural and architectural significance, the mosque was gazetted as a National Heritage site under the National Heritage Act 2005.