Khanderi Fort is situated around 4 km from Alibaug, which was constructed on a small island by the Maratha ruler in 1678. There are two popular attractions in the fort, which are a temple devoted to Lord Vitthal and a Tomb of Daud Pir. Towards the north of the fort at about fifty yards, there is a wooden roofed temple with small tile in which Lord Vitthal is worshipped.Both the temple and the tomb are worshipped by the fisherman passing near the island. These deities are believed to rule over the waves, which are steep in northerly gales and in the Khanderi neighbourhood.The fort remained under the rule of Marathas until 1750, which later became a part of the Peshwa territory. Moreover, the fort was under the British rule, where they built a lighthouse, which is in ruins at present. This lighthouse was called as an octagonal masonry tower, which was built in 1867 with a height of 75 ft. On a flat roofed house, it was constructed with a lantern in the centre, which is 161 ft above the sea level.At the time of danger, a red ray was shown, which covered the seaward of Alibaug and Ceul. To the north-east of the tower, there was a 200 ft high flag staff stand. At present, the fort is under the control and management of Bombay Port Trust Administration. By using local boats, visitors can reach the site after the permission of Bombay Port Trust.