It is located 47 km (29 mi) southwest of Dili, the national capital, and had a population of 2,788 in 2015.

Indonesian soldiers set up a relocation camp in Aileu for the East Timorese at the end of 1979.

In early September, during the 1999 East Timorese crisis, residents of various sucos in the area were expelled from their homes by the Aku Hidup dengan Integrasi militia of Indonesia.

The Seloi Craic suco was destroyed on September 6, the houses burned down and livestock slaughtered.

At the end of 1999, there were temporary plans to make Aileu the new capital of an independent East Timor.