[3] Following on the from establishment of the LabourMuslims Twitter feed in September 2016, and a website in mid-2017,[4][5] the group had its official launch on 11 December 2017 at the House of Commons, with the stated aim of being an "inclusive organisation which seeks to support British Muslims' engagement in the political process and with the Labour Party, based on shared values of social justice and equality."

The launch was attended by party leader Jeremy Corbyn, as well as MPs Andy Slaughter, Wes Streeting, Dawn Butler, Rupa Huq and Afzal Khan.

Ali Milani, a former Vice-President of the National Union of Students, chaired the launch as an executive member of the group.

[7] Shia news organisation Shafaqna noted the presence of Islamists and neo-conservatives at the launch, and expressed concern about the risks of the group acting in those interests.

[6] Milani was the unsuccessful Labour candidate in Uxbridge and South Ruislip at the 2019 general election, at which he came second to the Conservative incumbent, prime minister Boris Johnson.