Potassium aluminum fluoride was first synthesized in the early 20th century as part of studies on molten salt systems and their applications in metallurgy. It was likely prepared through the reaction of aluminum fluoride with potassium fluoride under controlled heating conditions. This synthesis typically occurs in aqueous or molten environments, where stoichiometric ratios of the reactants are carefully maintained to ensure complete formation of the desired compound. Potassium aluminum fluoride finds significant use in the aluminum smelting industry, where it serves as a fluxing agent to lower the melting point of electrolytic bath components in the Hall–Héroult process. It is also employed in the production of specialty glasses, ceramics, and optical materials due to its unique ionic conductivity and thermal stability. Additionally, it has niche applications in welding fluxes and brazing compounds. While not commonly found in biological systems, the compound can be synthesized from naturally occurring fluoride minerals such as cryolite (Na3AlF6) through ion-exchange reactions with potassium salts. Industrially, it is often prepared by reacting potassium fluoride with aluminum fluoride hexahydrate at elevated temperatures, followed by calcination to remove residual moisture and achieve the desired crystallinity.

Potassium aluminum fluoride is considered to be moderately toxic upon ingestion or inhalation, with potential for both acute and chronic health effects. Exposure may lead to irritation of the respiratory tract, coughing, and shortness of breath, while skin or eye contact can result in irritation or chemical burns. Long-term exposure to aluminum-containing fluorides may contribute to skeletal fluorosis or other systemic effects related to aluminum accumulation. The compound is not currently classified as a carcinogen by the International Agency for Research on Cancer (IARC) or the Environmental Protection Agency (EPA), though prolonged exposure should be minimized to prevent potential health risks. For safe handling and storage, potassium aluminum fluoride should be kept in tightly sealed containers in a cool, dry, and well-ventilated area. It should be isolated from strong acids, particularly hydrofluoric acid, which can release toxic fluoride and hydrogen fluoride vapors upon reaction. Storage areas should also be free from incompatible materials such as alkali metals or oxidizing agents to prevent hazardous interactions.