The school was started by employees of the Bahrain Petroleum Company (BAPCO) for their children living in Awali.

Eventually, an arrangement was made to allow a certain number of children of non-Bapco employees to attend the school for an academic fee.

The school offered British primary curriculum education from reception to Sixth form.

In World War II, the oil refineries in Bahrain were bombed causing the closure of the school and expatriate families were evacuated.

Queen Elizabeth II and Prince Philip visited Awali School in 1979 during their tour of Bahrain.