It stands as the second-largest mosque in the Kashmir Valley, following the Jamia Masjid in Nowhatta. 

The origins of Aali Masjid trace back to the 15th century, though historical accounts vary regarding its exact construction date. Some sources attribute its establishment to Sultan Ali Shah in 1395 CE, while others suggest it was built in 1471 CE during the reign of Sultan Hassan Shah of the Shah Mir dynasty . The mosque is named in honor of Hazrat Ali, the revered companion and son-in-law of Prophet Muhammad (PBUH), reflecting its deep spiritual significance for the local Muslim community 

• Deodar Wood Columns: The mosque's prayer hall is supported by 151 deodar wood columns, each approximately 5 meters tall and 0.95 meters wide, resting on intricately carved stone pedestals . 
• Hypostyle Hall: The main hall measures 61.2 by 20.5 meters, consisting of 75 modules, creating a spacious and serene environment for worshippers. 
• Pinjrakari Work: Intricate lattice woodwork adorns the interiors, exemplifying traditional Kashmiri craftsmanship. 
• Khatamband Ceilings: The mosque features decorative wooden ceilings, adding to its aesthetic and cultural value . 

The mosque's total area spans approximately 1,844 square meters, accommodating up to 2,500 worshippers. 

Over the centuries, Aali Masjid has undergone various renovations to preserve its structural integrity and historical essence. Significant restoration efforts were undertaken in the early 21st century by the Indian National Trust for Art and Cultural Heritage (INTACH) and the Aga Khan Trust for Culture. These initiatives focused on reviving traditional building techniques, training local artisans, and emphasizing preservation over reconstruction