Founded in 1808 by Tengku Syed Hussain Al-Aidid, a wealthy Arab merchant from Sumatra, the mosque was the heart of the "Acheen Street Enclave." During the 19th century, this area became a primary gathering point for pilgrims from Southeast Asia preparing for the Haj pilgrimage to Mecca. The mosque's unique minaret is said to have been used as a lookout point to spot incoming ships. The surrounding community was once a bustling hub for the printing of religious books and the trade of spices and textiles. Today, it remains a vital spiritual center and a key part of the UNESCO World Heritage core zone, preserving the early history of the Arab and Malay settlements in Penang.