Alchemy was born in ancient Egypt, where the word Khem was used in reference to the fertility of the flood plains around the Nile. Egyptian beliefs in life after death, and the mummification procedures they developed, probably gave rise to rudimentary chemical knowledge and a goal of immortality. By 332 BC, Alexander the Great had conquered Egypt. Greek philosophers became interested in the Egyptian ways. Greek views of how matter is made up of the four elements of nature - Fire, Earth, Air and Water, were merged with the
Egyptian sacred science. The result was Khemia, the Greek word for Egypt. When Egypt was occupied by the Arabs in the 7th Century, they added 'al-' to the word Khemia and al-Khemia meaning 'the Black Land' is now seen as a possible origin for the word alchemy. The Greek word khumos, meaning 'fluid' has been suggested as an alternate origin for the word alchemy, there is as yet no consensus on the matter. It is unfortunate that more is not known about this early period in the history of alchemy. In 391, invading Christians burned the great library in Alexandria, destroying many relevant works.

Alchemy was also developed independently in China by Taoist monks.

The monks pursued both the outer elixir and the inner elixir. The former being minerals, plants etc. which could prolong life, and the latter being the use of exercise techniques, such as Qigong, to manipulate the chi or life force of the body.

Many of the earliest chemists, physicians, and philosophers were also alchemists. The word “alchemy” brings to mind a cauldron-full of images: witches hovering over a boiling brew, or perhaps sorcerers in smoky labs or cluttered libraries. Despite these connotations of the mythic and mystical, alchemical practice played an important role in the evolution of modern science. Historically, alchemy refers to both the investigation of nature and an early philosophical and spiritual discipline that combined chemistry with metal work. Alchemy also encompassed physics, medicine, astrology, mysticism, spiritualism, and art. The goals of alchemy were:

to find the “elixir of life” (it was thought that this magical elixir would bring wealth, health, and immortality);
to find or make a substance called the “philosopher’s stone,” which when heated and combined with “base” (nonprecious metals such as copper and iron) would turn it into gold, thought to be the highest and purest form of matter; and
to discover the relationship of humans to the cosmos and use that understanding to improve the human spirit.

Alchemy was scientific but it was also a spiritual tradition. Some of its practitioners had altruistic intentions. For instance, if alchemists could learn the secret of “purifying” base metals into gold, they might gain the ability to purify the human soul.