The museum was founded in 1998 AD, and it is located in the Khan Palace, which dates back to 200 years. This palace is located on the steep hill (Qala district). The museum contains more than 3,700 pieces on display, including 305 carpets. 2 out of 8 halls in the museum are dedicated to the Nakhchivan Khanate. Here you can find all kinds of carpets, rugs, and tapestries dating back to the 18th and 19th centuries. Besides, the museum houses household items, copper ornaments, pottery and porcelain, and old clothes for men and women.