The 950-square-meter Peneleh Grand Mosque is located in Peneleh Gang V. According to oral tradition, the mosque was built by Raden Rahmat (Sunan Ampel) in 1421 AD. Initially, it was a small prayer room (langgar) that was eventually renovated into a mosque. Since the 18th century, the prayer room has become the mosque it is today. Since then, residents have referred to it as the Peneleh Grand Mosque.

While information or references regarding the Peneleh Grand Mosque are scarce, locals believe it was built by Sunan Ampel in 1421, predating the Ampel Mosque. This belief is reinforced by the Indonesian Encyclopedia compiled by Prof. Dr. MR TGS Mulia and Prof. Dr. KAH Hadding, which states that Al Rahmatullah (Sunan Ampel) moved from the village of Kembang Kuning to Peneleh. He subsequently built a mosque larger than the Kembang Kuning prayer room. It is estimated that Rahmatullah founded the mosque in Kembang Kuning with Nyai Karimah.