Aluthgama is situated on the northern bank of the Bentota Ganga (River) mouth.

It is a sitting Figure of 48.8 meters, and has been erected in the Kande Viharaya Temple north of the river.

A messenger poem, "Thisara Sandesha", written in 1366 mentions the beauty of Aluthgama.

On 15 June 2014, Aluthgama was the scene of the 2014 anti-Muslim riots in Sri Lanka which resulted in 4 deaths and 80 people injured.

Aluthgama is located on the Coastal or Southern Rail Line (connecting Colombo through to Matara).