The ADPL was founded on 26 October 1986 as a political organisation by a group of incumbent Urban Councillors, District Board members, members from mainly four grassroots organisations and professionals, the Association for Democracy and Justice, the Society for Social Research, the New Hong Kong Society, the Hong Kong People's Council on Public Housing Policy, the Septentrio Academy and the Sham Shui Po Residents Livelihood Concern Group.

The ADPL was one of the three major pro-democracy groups and performed fairly well in the local and municipal elections the 1980s with its strategic allies the Meeting Point and the Hong Kong Affairs Society.

The ADPL retained its separate identity, arguing that it represented grassroots interests whereas the United Democrats were more focused on the middle class.

At the time, due to near-parity of representation between the pro-Beijing and pro-democracy camps in Legco, the stance of the moderate ADPL was influential and often pivotal on controversial issues.

On the issue of the establishment of the Provisional Legislative Council, the ADPL initially opposed but then agreed to join the interim body.

In a pan-democrat primary, Fung stood in the 2012 Chief Executive election but was defeated by the Democratic Party's Albert Ho.

Both Fung and Tam lost in the election while Ho withdrew from the campaign to boost other pro-democrat candidates' chance to win.

[10] On 12 July 2018, Fung announced his departure from the ADPL amid speculation that he was going to run for the November Kowloon West by-election as the party intended to back Lau Siu-lai.

[11] Chairman Kalvin Ho and vice-chairman Sze Tak-loy was charged with subversion under the National Security Law in 2021, resigned respectively later after bail granted by court.

The defeat of all moderates and democrats in the election marked by low turnout pressured Yeung, who supported Frederick Fung in the campaign and angered some pro-democracy activists, to resign as the acting chair of the party, citing his wish to focus on local issues.

[15] Bruce Liu said that the ADPL has entered the "desert stage", describing the current regional administration as being like Shenzhen's system.