Originally built and named Xebec in 1898, the vessel was an ocean-going sailing clipper designed to transport casks of wine from Portugal to England. Measuring only 58 feet in length, she was notably small for regular voyages across the notoriously challenging Bay of Biscay.

In 1935, the vessel was converted into a private motor yacht, renamed Falcon II, and fitted with a four-cylinder engine. During the Dunkirk evacuation, Falcon II completed five trips, rescuing approximately 90 men on each occasion and transporting them safely to Ramsgate. In total, she rescued 450 men and survived the operation without damage.

Wing Commander Leonard Lambert DFC, AFC, discovered the vessel in 1975 moored on the riverbank at Thames Ditton. Lambert had been rescued from Dunkirk by a Little Ship after enduring five sleepless nights wounded on the beach, followed by several months of hospitalization. His acquisition of Falcon II, subsequently renamed Alabama, held particular significance due to this personal connection.

In 1988, the vessel narrowly escaped destruction when she was struck by a hit-and-run ship at Cadogan Pier, Chelsea, in central London, causing her to sink at her moorings. The responsible party was never identified. The insurance company declared the vessel a total loss and ordered her to be broken up.

Michael Hamby, an enthusiast of Dunkirk Little Ships and owner of the vessel Count Dracula, learned of the incident and purchased Alabama for £1. He undertook the task of refloating her and transporting her to Toughs Boatyard at Teddington for repairs. The raising of Alabama was documented in a video film, showcasing the skill and care of Tough's boatmen.

At the time of the last update, it was believed that a new owner had assumed responsibility for restoring Alabama, demonstrating the dedication inspired by the Little Ships. The vessel is now lost.