The Alliance was once also known as the Alliance of Lordaeron when its leadership was centered in Lordaeron. However, the Alliance was forced to move the bulk of its forces to Kalimdor and to the southern Eastern Kingdoms continents of Khaz Modan and Azeroth after the plague of undeath ravaged the Kingdom of Lordaeron several years ago.

Although the remaining living nations of Lordaeron are not as strong as they once were, they have pledged their loyalty to the Grand Alliance with the hopes of becoming strong once again. Over the course of the years new members and races have joined the Alliance furthering its united strength.

The modern Alliance is the successor to the Alliance of Lordaeron, which was created at the behest of King Terenas Menethil II of Lordaeron and Lord Anduin Lothar of the kingdom of Stormwind following the First War, five years after the reckoning. The human, dwarf, gnome, and high elf races allied together to fight off the orcish Horde. The Alliance was formed after the humans' defeat in the First war. King Terenas Menethil realized that the Horde was too powerful to be stopped alone and called all the seven human kingdoms to join forces, this is how the Alliance was created. Later the other races of Azeroth, the Ironforge and Wildhammer clan dwarves, The gnomes of Gnomeregan and the high elves of Quel'Thalas joined the Alliance as well. After a long bloody war, the Alliance managed to defeat the orcs, free the lands of Azeroth and send the orcs back to the Dark Portal. The result of this war was considered the Alliance's greatest victory.

Events of the Second Invasion led to an alliance with both the night elves and the Horde. The former became permanent, while the latter did not.

The third war was the biggest crisis the Alliance had ever known, most of the human and high elf population of Azeroth was murdered by the scourge. With Arthas' betrayal the Kingdom of Lordaeron fell under the Scourge. Just has it seen as the end of humanity the remaining forces of Lordaeron Under the Command of Grand Marshel Garithos managed to retake Dalaran. backed by the Blood Elf's the Alliance Remnants managed to repel the Scourge in Silverpine Forest. At the same time Stormwind and Ironforge sent reinforcements to the Hillsbrad Foothills and repelled the Scourge in the Alterac Mountains. After that, Garithos decided to send troops to retake Lordaeron from the Scourge, from where he and the rest of his forces never came back. The forces of Stormwind and Ironforge did not sent their troops to help him. It is unknown why they refused to help him but it is suggested that they realized that such an act would be a suicide mission and therefor refused to send their own troops to the Plaguelands and offered shelter to the refugees of Lordaeron instead. During which time Jaina Proudmoore led other surviving humans of Lordaeron to Kalimdor, aligning herself on Kalimdor with the night elves and inviting them to join the Alliance. Joining forces with the Horde, Jainas' Forces and the night elves managed to defeat the Burning Legion's forces and save Azeroth. After that, Jaina reunited her new nation with Stormwind and the survivors of Lordaeron, and the night elves finally joined the Alliance.

Following the Second Invasion, many of the surviving high elves re-branded themselves as blood elves and rejoined the Alliance shortly after the invasion, only to leave it again following an attempted purge by Grand Marshal Garithos. The true high elves remain loyal to the new Alliance, most notably the ones dwelling in Theramore under Lady Jaina Proudmoore and in the Hinterlands at Quel'Danil Lodge. More recently, high elves have grouped together in Northrend as the Silver Covenant.

The Alliance is not a uniform governmental body, but is a coalition of mutual military and economic aid. Housing the Alliance Assembly, Theramore was once considered the official home of the new Alliance, when Stormwind was bound under Onyxia's thrall under the guise of Katrana Prestor. The inability of Stormwind to act forced both Theramore and the night elves to step in, resulting in a growing gap of cooperation between the two continents. This, however, is no longer the case with King Varian's return and the death of Onyxia. Varian's direct aid to the night elves has won their trust, and Jaina's constant presence with him as an advisor (and to temper his edges) has firmly reunited Theramore and Stormwind once more.

In the past, certain rules, customs, and regulations were a constant hindrance to mutual actions across the entire Alliance. This made cooperation sluggish, and considerably slowed the rate at which the Alliance was able to reclaim its former lands and glory. Despite the problems and intrigues within their leadership, all parts of the Alliance are steadfast in their desire to reclaim and rebuild, and all members share a distrust of the Horde. Approximately 800,000 souls belong to the allied races spanning two continents (based on membership numbers of the Church of Light). The Alliance is a great and peaceful body overall, their might being legendary, but their desire for peace, even stronger. Above all, where Jaina Proudmoore and Tyrande Whisperwind are good at coordinating their efforts on Kalimdor, Lady Katrana Prestor of Stormwind was doing a fine job of undoing the Alliance in the Eastern Kingdoms,[8] however she has been slain in lore and King Varian Wrynn has now taken his rightful place as king.

Even now, as always, humans are the glue that hold the Alliance together, being the most numerous and diplomatic of the member races. The armies of Stormwind are stationed throughout the Eastern Kingdoms, trying to retake regions such as Duskwood, Westfall, and The Redridge mountains. The armies of Ironforge are mainly stationed in Khaz Modan along with their Gnome allies, and the night elven armies are mainly defending northern Kalimdor from Horde's deforestation of the Ashenvale. The remaining draenei forces are still trying to secure their new home on Azuremyst Isle, and are also stationed in Outland. The recently brought in Gilnean armies are defending themselves from the endless onslaught of the Forsaken.