Standing on a small island the fort is located about 3-4 km deep into the sea near Thai beach, which is around 5kms away from the main city.
Khanderi fort was constructed in the year 1678. It is said that various efforts were put in by the British, till the year 1750, to capture the Khanderi Fort but they were not successful. However later, under the reign of Peshwa the fort was handed over to the British. It remained under the control of British for a long time but now is administered by the Bombay Port Trust.
It is recommended that tourists must take prior permission from the administration, when planning to visit the fort in their local boats. Besides being a major attraction in Alibag, the fort sees tourist visits throughout the year. The fort was constructed by the Marathas, who hired skilled craftsmen to give it a remarkable structural design with the help of stone. Khanderi is a picture perfect exquisiteness in the midst of the beach.