Established in 1920, the original title of the team began as Sport Friends, but on 23 January 1921, the club's title was changed back to the present name and is considered to be the official date for the club's founding. Alaves were the very first team to gain promotion out of the Segunda Division to La Liga in 1929-30, a period that lasted three years. The first time it played in the Primera Division Alaves finished 8th from 10 teamsand was one point of being deported.
In 1953-54, the team reached the top league for a period of two years. In the presence of Roman Galarraga as a coach The club was able to secure long-awaited promotion into Segunda Division in the 1973-74 season. When the season ended in June, following having avoided relegation earlier seasons, Alaves dropped to Segunda Division B, where they remained until the 1985-86 season. After years of battling disappearance, which continued into the 90s (playing at the top of the tier in the latter half of the 80s), Alaves finally achieved their return to Segunda Division Segunda Division in 1994-95 after two consecutive seasons of being the top team in their group Segunda Division B - created as the third level in 1977 - and failing in the play-offs for promotion.
After having won in the Segunda Division in 1997-98, Alaves returned to the top of the ladder after a gap of 42 years. After their return that saw them avoid being relegated by one point, they recorded two victories over Barcelona during the subsequent season and were able to qualify to play in the UEFA Cup for the first time when they finished sixth (to date, their top-ever place, only twelve years following their worst-ever position placing of 8th in the group at the fourth division).
Alongside finishing the domestic league in the 10th place, in 2000-01 the Basque club made it to the semi-finals in the UEFA Cup after beating Internazionale, Rayo Vallecano and 1. FC Kaiserslautern, the latter winning 9-2 in aggregate win. The final was losing 4-5 to Liverpool, Alaves losing to the "own-golden score" after the game went until extra time. The game also saw two red cards as well as two goals disallowed in extra time, in along with the 9 goals that were counted, and was called by some as one of the best showcase games of the history of the competition.
Alaves finished 2001-02 in seventh place and were able to qualify to play in the UEFA Cup for a second time, but the European campaign in 2002-03 was not as successful than the previous two years the team won their opening game against Ankaragucu then a loss against the other Turkish Super Lig side, Besiktas. On the 26th of January, 2003 the club celebrated their 100th victory on the field in La Liga after defeating Real Valladolid 3-1.
While Alaves were dropped from the league after 2002-03, they were able to regain the top spot two years after. At the time, Alaves was acquired by a businessman from Ukraine, Dmitry Pietrman, and several disputes ensued with Alaves' coaches, players and supporters alike. The top division return was only for one season, since the club had three coaches, and ended in 18th place, just one point away from being safe. Piterman quit in 2007 and the club was in debt following his time. In the midst of two seasons struggle against the possibility of being relegated to the third level Alaves ultimately fell in the 2008-09.
The black period that followed during Segunda B lasted four years until Alaves was purchased from Jose Antonio Querejeta and was promoted to second division on the 29th of May in 2013. and were the all-time champions from the third division and a chance to resolve its financial issues. Three years after, on May 29, 2016 Alaves received promotion up to La Liga as second tier champions after defeating Numancia by 2-0 to take over Leganes in the final day of the competition.
The 10th September of 2016 Alaves received their first victory of their return to La Liga by defeating defending La Liga champions Barcelona 2-1 at the Camp Nou. On February 7, 2017, Alaves qualified for the 2017 Copa del Rey Final after beating Celta of Vigo during the semi finals of the tournament. It is the very first time in the history of the club that Alaves was able to make it to this final stage of their national cup with with their previous bests were semi-finals from 1998 and 2004. The team they faced in the final will be Barcelona and, coincidentally, both clubs played in the league immediately following their semi-finals in the cup; the Catalans suffered a 6-0 loss on Alaves at their home Mendizorrotza Stadium, exacting revenge for their loss that they had earlier. Barcelona also took the trophy in the final which was played on the Estadio Vicente Calderon with a 3-1 score, which meant that there was no chance of returning back to European finals for Alaves. For the La Liga that season Alaves were 9th in the league with 14 wins 13 draws and 11 defeats. In the 2021-22 season Alaves were dropped to the second division following defeat by Levante. The club ended their six-year run with La Liga, their longest ever stint in the top flight.