The Indian School Al Wadi Al Kabir was formally founded in 1941 as a Gujarati Medium School for the children of the members of the business community. It began to take its present shape in 1987 as Indian School Muttrah, with English as the medium of instruction. It was named Indian School AL Wadi Al Kabir because of its location when it moved into its new premises in September 1993.

The School was granted composite affiliation till grade X in December 1992, and was later upgraded to Senior Secondary level in 1999. It is managed by an association of members of the business community in Muscat through a committee called the Managing Committee of Indian School AL Wadi Al Kabir.