Alhambra is located within the San Gabriel Valley, which is included in the ancestral home of the Native American groups known today as the Tongva, Kizh/Kite and Gabrielino peoples.

Alhambra was incorporated in 1903. Benjamin "Don Benito" Wilson, who owned 40,000 acres in three counties, provided 300 acres of his property in Alhambra and sub-divided it into five and ten acre lots. The name Alhambra came from Wilson's daughters and cousins who were reading "Tales of the Alhambra" by Washington Irving.

In the early 20th century, Midwestern families set a course for Southern California, with its promise of new beginnings and new lives. Their energy and optimism fueled Alhambra’s own growth, and contributed to the development of the entire region.

Alhambra experienced a wave of new immigrants - Italians in the 1950s, Mexicans in the 1960s and Asians in the 1980s. A very active business district has developed along Alhambra's Valley Boulevard as a result.