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In Roman times Alcester (Alauna) was a walled town and Roman fort of some importance being located at a junction between the Ryknild Street Roman road and the ancient Saltway from Droitwich and the roman road from Stratford upon Avon and the Fosse way.

An important market town, Alcester was the site of a Benedictine monastery founded in the middle of the 12th century by Ralph le Boteler. The monastery was once a thriving one. In 1318, Walter de Beauchamp, who had a seat in the neighbourhood, complained to the abbot of the monastery that some of his monks had removed Beauchamp's possessions from his manor. At the Dissolution, King Henry VIII granted the monastery to the Greville family.

The town today includes a number of preserved Tudor and other houses, notably those near the parish church, in Butter Street and in Malt Mill Lane. The Old Rectory, situated directly in front of the church, is a particularly interesting example of Georgian architecture. A number of fine Victorian additions have been made at the rear of the house. The clock on St Nicholas' church is in an unusual position on the south-west corner of the 14th century tower, making it visible from the main High Street. The church also houses the tomb of Fulke Greville, grandfather of Fulke Greville, 1st Baron Brooke.

Alcester is known for two nearby local stately homes, Coughton Court, (a National Trust property) north at Coughton, and (south-west), Ragley Hall, the home of the Marquis of Hertford. Kinwarton, which is just north of Alcester, contains a church of Anglo Saxon origin, and a historic dovecote — Kinwarton Dovecote — which is a National Trust property.

Ragley Hall is home to the Jerwood Sculpture Park.

Alcester is also a significant town on the 100 mile-long Heart of England Way long-distance walking route.

Recent developments, made by the council, include 'Roman Alcester', a museum showing locally found artifacts from the 1st to 4th century AD. Admission is free although the museum is only open from Thursdays to Sundays.

In early June Alcester holds the Court Leet charity street market with a procession and competitions for best stall and best fancy dress.

On the first Monday and Tuesday of October Alcester plays host to an annual Mop Fair where amusement rides, side stalls and food booths line the High Street, Church Street and Henley Court. The mop fair has gradually over a period of years been decreasing in size. This is more likely to be an external influence as the people of Alcester still flock to the streets during the two nights.