The idea of reviving the ancient library was first proposed in 1972 by Mostafa El-Abbadi, a professor at Alexandria University. The Egyptian government decided to sponsor the project, and it received international publicity and support through UNESCO. A site was selected adjacent to Alexandria University and near the location of the ancient library.

Construction of the $200 million structure was completed in 2001, and the library's design drew worldwide praise. Essentially, the library is a massive cylinder emerging from the ground at a shallow angle only about 130 feet (40 metres) from the Mediterranean Sea. The disk-shaped roof suggests the sun rising over the Mediterranean, and the roof pattern of aluminum and glass panels resembles a microchip. One outer wall of the structure is made up of some 6,400 granite panels bearing characters from all the known alphabets.

The complex was officially opened on Oct. 16, 2002. The library was designed to house eight million volumes on seven cascading levels. The collection is shelved with the oldest materials on the lowest level, forming a metaphoric foundation for later works. In addition, the library houses a planetarium, a school of library and information science, facilities for the digital preservation of rare books and manuscripts, and a conference centre.