Founded by French explorers in the 16th century, Alcântara was later conquered by the Portuguese, who used the small village as a base to take São Luís from the Dutch in 1646.
The city was declared by the Brazilian government as a National Historical Patrimony. The city's economy is based mainly on tourism and fishing.
The Brazilian Space Agency maintains a launch site in Alcântara. In August 22, 2003, an accident occurred when a VLS-1 rocket accidentally exploded, killing 21 Brazilian technicians.
Helton da Silva Arruda, a famous Brazilian goalkeeper, was born in the city.