[3] The company was founded in 1999 by Novosibirsk State University students Alexander Lyskovsky and Sergey Zanin.

[5] In 2001, the company released Magic Ball, a 3D arkanoid-style game developed by Dream Dale in Irkutsk.

In 2019, Alawar developed and published the free-to-play battle royale shooter Watchers (servers shut down in August 2021),[8] as well as Space Robinson, an action game with rogue-like elements.

In April, the company announced the development of Necrosmith, a rogue-like Necromancer simulator that was released on 13 July 2022 and has sold over 200,000 copies on Steam.

On 5 April 2023, Wall World, a mining and tower defense game by Alawar, was released on Steam and sold 200,000 copies in 2 months.