The heritage blue plaque was unveiled at Fleetwood's Marine Hall - marking the location of Alfie's first public concert performance at the age of 14.
The event took place as part of BBC Music Day, with internationally renowned tenor Alfie's tribute one of 47 paid up and down the country to people and places with key roles in musical heritage.
"Amazing isn't a big enough word to describe this honour," he said. "It's great to see all these people, friends and family - actually I'm feeling really torn as there's so many people here."
Alfie spoke of his parents having met in the local area and going on dates to dances at the Marine Hall and joked how his late father would have said he could have made a plaque for him.
He added that the plaque had extra meaning, as Alfie was named after his dad, adding: "He's not here, but it's also his name up on that wall."
As well as his mum Pat and five of his eight siblings, Blackpool-born Alfie was joined by friend and musical collaborator Michael Ball who did the honours in unveiling the plaque.
"Alfie has always gone on about his pride in coming from Fleetwood and his love of it," the fellow musical theatre star said. "It's palpable, and seeing how proud the community is of him too is lovely."
After revealing the plaque, Alfie starred in an hour-long live broadcast on BBC Radio Lancashire, with friends and family paying tribute to his career, with Alfie performing stunning acoustic renditions of the appropriately titled tracks Bring Him Home - the song from musical Les Miserables that catapulted him to fame, and Keep Me In Your Heart, before being joined on stage by Michael to close the show with A Thousand Years.
Read more in tomorrow's Gazette.