The club was formed in 1884 when Alexander F.C. (formed in 1880 by the Alexander Cricket Club, which itself was formed in 1878) amalgamated with another local club, Wanderers F.C. Alexander had been a founder member of the Irish Football Association in 1880, contributing to the purchase of the original Irish Cup.
Nicknamed "The Roesiders" or "The Lims", in 1885 and 1886 the club reached consecutive Irish Cup Finals, losing both to Distillery - the first 3-0 and the second
1-0. After a protest by Limavady in 1886 the result was confirmed, but medals were withheld from both teams in spite of a challenge in the High Court by a Distillery player. Between 1882 and 1888, the club provided seven internationals to the Irish national football team. The club also famously travelled to Liverpool in 1886, and defeated Everton 1-0, the first team from outside Great Britain to do so.
The most notable feats in terms of cup wins for the club have occurred since the 1960's. As a junior club they won a number of North West titles and most notably the Irish Junior Cup in 1964. Promotion to Intermediate football was achieved in 1972 when the club was admitted into the newly formed Irish League B Division. The club subsequently went on to lift the Irish Intermediate Cup in 1974. Two B Divison titles were won, the first in 1983-84 and the second 9 years later in 1992-93, when a famous treble of the B Division title, B Division Knock Out Cup and the Craig Memorial Cup was won. A second Intermediate Cup success was achieved in the 1995-96 season.
After a long time as a junior team, the club joined the senior Irish Football League in 1997-98. Promotion to the Irish League Premiership was achieved in 2003 meaning that the club was promoted to the top tier of N. Irish football for the first time. This was followed by the club reaching its first Irish Cup semi-final in over a century in the 2003-04 season where they were defeated by eventual winners Coleraine. In 2008, the club lost its senior status when it failed to gain admission to the new IFA Premiership. Since then, the club has played in the IFA Championship.
Recent years have seen a great amount of success with two league titles (3rd tier), numerous Craig Memorial Cup victories, a North West Senior Cup win and a first Intermediate Cup win in 20 years.