The houses surrounding the mosque today is part of the original Muslim settlement of the mid 19th century.

The Acheen Street Mosque was built in 1808 on land donated by an Achenese aristocrat, Tengku Syed Hussain Al-Aidid.

Over the following years, this settlement became the centre of Islamic studies in Pulau Pinang, frequented by traders from the surrounding Malay archipelago, Arab and India.

Following the demise of Tengku Hussain in mid 19th century, the Lebuh Acheh Muslim settlement continued to thrive and was at one time referred to as the Second Jeddah, as pilgrims from nearby congregate here before departing to Mecca by sea.

Each year when the Haj season began, the Lebuh Acheh area was thronged by pilgrims and their families.