AzKP was set up in 1993 by Ramiz Ahmadov [az] (6 March 1939 – 10 September 2007) and registered by the Justice Ministry in 1994.

The AzKP was strongly against the Azeri participation into the Iraq War and it often expressed solidarity to Palestinian people and Cuba.

A splinter group from the main Communist Party of Azerbaijan (led by Firudin Hasanov) was formed in 1996.

Leaders of the other Azeri communist parties describe Hasanov as a "traitor" for his collaboration with the government.

In the parliamentary elections of 6 November 2005 won no seats, but the chairman Ramiz Ahmadov was not running due to health problems.