The mosque is regarded as the last of its kind in Singapore due to it being built in the traditional style of Malay architecture used in older villages (kampong).

During the 1960s, plans were made to construct a larger mosque for the residents of nearby villages.

[2][3][4] It was built by the local villagers, especially the youth who dedicated their time to its construction.

[4] However, the name was later changed to Masjid Petempatan Melayu Sembawang in honour of the existing Malay settlement (Malay: petempatan Melayu).

[4][6] The rubber tree next to the mosque has local significance due to its old age.