The folk art Museum was opened under the auspices of the American Institute of arts in Cuzco. Figures of the American Institute of the arts decided to create the folk art Museum to preserve the tradition of pure Peruvian art. One of his first activities was the organization of a competition for "the Most popular artwork of the year", which took place at the Christmas fair Santurette December 24, 1937. As of this date, the Institute promotes the work of artists who preserve the folk tradition of sculptors and ceramists.

American Institute of the arts for all time of its existence had not received any support from the state in their endeavors. The prizes were donations from the public and private firms. The history Museum is intertwined with the history of the Institute for nearly eighty years of artistic life in Cuzco.

In the Museum of folk art and you can see sculptures, ceramics and other works of art created by famous contemporary artists from Cusco - Edilberto Merida Hilario Mendivil, Santiago Rojas, Maximilian Palomino Sierra and Antonio Olav. The Museum also has an extensive gallery of contemporary art with paintings of Francisco gonzález Gamarra, Mariano Fuentes Lira, Agustin Rivero and an extensive collection of images from Martin Chambi and Vidal Gonzalez.

Today, the Museum of folk art attracts all lovers of beauty, makes a valuable contribution to the aesthetic education of the younger generation, making them to the study of folklore and Ethnology.