The embassy is one of two major American installations in Bahrain, the other being Naval Support Activity Bahrain, a base which houses the main United States Navy operations in the Persian Gulf.

[3][4] Embassy Manama was officially inaugurated on September 21, 1971, with John N. Gatch, Jr. assuming the role of Chargé d'Affaires ad interim.

The first official ambassador, William Stoltzfus, presented his credentials to the Bahraini government on February 17, 1972, while maintaining residence in Kuwait.

The building was constructed in accordance with Department of State security requirements.

[5] Bahraini citizens and activists have protested outside of the embassy for various reasons, including anti-Iraq War demonstrations, the presence of the U.S. Navy's Fifth Fleet in Bahrain, and to protest Israeli actions in the Middle East.