Built in 1678, the Khanderi Fort is located on a small island at around 4 km from Alibag. The fort houses a famous temple dedicated to Lord Vitthal and a Tomb of Daud Pir which are believed to be rule over the waves and are worshipped by the fishermen passing by. The British made a lighthouse in the later years which is 75 feet high but is now in ruin. The lighthouse had a lantern in the middle with a height of 161 feet above sea level. Nowadays, the fort is in charge of Bombay Port Trust Administration and special permission is required to visit the place.