Marang is one of the popular districts in Terengganu which attract lots of tourists outside or within the country. Its location as a stop center for tourists who want to visit Kapas Island, Redang Island, Gemia Island and other attractions brings a good advantage for the growth of the town. Over the years, Marang has seen growth in economy and tourism due to the increase in number of tourists. Because of the rapid growth in Marang, the state government, under the Islamic Council of Terengganu had decided to upgrade the mosque in Marang town. This was because the current mosque could not bear the increasing number of congregation in the town, especially when performing Friday prayers.
The construction of the mosque was started on 22nd of October 2003 and fully completed on 19th April 2005. The cost for the new mosque was about RM8.3 million. As a result, the new mosque can occupy around 1500 to 2000 congregation members as well as visitors. The beautiful mosque shines brightly in its huge compound, adorned with a big dome on its center and flanked with four tall minarets on each corner. The landscape of the mosque gives a boost to peaceful and tranquil feeling for visitors to the mosque. The mihrab is decorated with beautiful, Islamic-influenced carvings and tiles. The mimbar of the mosque was made from wood and enriched with simple carvings which made it look nicer.
In 21st July 2006, the new mosque in Marang was officiated by His Majesty Sultan Mizan Zainal Abidin,
the Sultan of Terengganu and named Masjid Sultanah Nur Zahirah in honour of the Queen of Terengganu.