Although about six decades have passed since it was first serialized in Al Ahram newspaper in 1959, Naguib Mahfouz's Children of the Alley remains as controversial as it has always been. It has always been the target of criticism for its godless universe, yet it is very rich in its Sufi symbolism. Despite accusations of blasphemy against the novel, it is fraught with Sufi symbols. Sufi concepts such as divine adoration, hope, repentance, humility, knowledge, purification, nearness and distance, spiritual journey, recollection of God and hermitage are all evident in Children of the Alley. These concepts are analyzed in the light of the stories of Gabalawi, Adham, Gabal, Rifaa, Qassem and Arafa that are inherent in Sufism. Places in Children of the Alley are also imbued with Sufi significance such as Hind's Rock and the mansion at the top of the alley. As Mahfouz says that the allegories in his writings can be read in various ways depending on the reader, the current study claims to interpret the Sufi symbols in Children of the Alley.