Alcazar was formed in 1998 with three members, Andreas Lundstedt, Tess Merkel and Annikafiore Kjaergaard. Their first single, Shine On, was successful in Sweden but it was the single, Crying at the Discoteque, that achieved success across Europe. Both singles appeared on their debut album Casino. Later editions of Casino contained a cover of the Human League hit Don't You Want Me, which also was the released as a single.
In December 2002, Magnus Carlsson joined the group. The second album Alcazarized was released in Sweden in 2003, it became a big hit and got an international release in 2004.
In 2003 Alcazar entered the pre-selection for the Eurovision Song Contest (Melodifestivalen) with the song Not a Sinner, Nor a Saint, which finished 3rd in the final. The song became a huge hit in Sweden.
In the autumn of 2004 Alcazar released This Is The World We Live In. The track samples Diana Ross’ 1980 number one Upside Down and uses lyrics from Genesis’ 1986 single Land of Confusion. The follow-up single was entitled Physical. Alcazar released the album Dancefloor Deluxe in Sweden in August.
In 2005 they took part in Melodifestivalen again with the song Alcastar and came third for a second time.
In the autumn of 2005 the band decided to take a break. Andreas moved on to musicals and played the lead in Saturday Night Fever and Tess became a poker pro.
In July 2007 the band did a one-off performance in London at the legendary night club G-A-Y and invited their friend Lina Hedlund to join them on stage. It all turned out to be a very successful combination and a few months later the "New Alcazar" was formed.
In January 2008 their first single We Keep On Rockin‘ was released. Music and lyrics by long time team member Anders Hansson. The single quickly became a hit and only a week after the release the single passed gold status in the sales.
In March 2009 the new album Disco Defenders was released in Sweden.
On 7 February 2009 Alcazar took part in the Swedish pre-selection for the Eurovision Song Contest with the song Stay the Night. The song came fifth in the final on 14 March and became a big hit in Sweden. In 2010 Alcazar once again competed in Melodifestivalen, with the song Headlines, which unfortunately missed out on the final.
Alcazar performed a farewell concert at Stockholm Pride on 6 August 2011 as the members decided to take a break.
On 23 February 2013 Alcazar were reunited in Melodifestivalen in Malmö and performed a medley (out of the competition) with the singer Danny Saucedo.
On 27 November 2013 it was announced that Alcazar will make a comeback in Melodifestivalen in Örnsköldsvik on 22 February 2014 with the song Blame it on the Disco.