The Museum of history and folk art, or Historical-ethnographic Museum is located in the heart of the old town on the street Vernardou, 28. The Museum is a private organization and was founded in 1973 by Mrs. Boatsales and Mr. Stavroulakis.

Beautiful restored Venetian mansion of the 17th century, which houses the Museum, was included by the Ministry of culture to the list of architectural and historical monuments. The building was officially presented to the state President and co-founder of the Museum by Mrs. Boatsales and is a typical house of the Venetian aristocracy. The official opening of the Museum of history and folk art was held 1998.

The exposition gives an idea of the lifestyle and traditions of the inhabitants of the island. In the Museum collection has over 5,000 items, including beautiful handmade textiles, textile equipment, embroidery, lace, elegant collection of folk costumes and decorations, beautiful samples of ceramic articles and articles made of stone, wood and metal. The Museum features documents, photographs, maps, weapons, flags, coins and more. Also there is an exposition devoted to the agricultural traditions of the island. In a separate hall there are exhibits that characterize traditional Cretan profession: farmer, harness maker, Cutler, etc.

The main objectives of the Museum are the collection and study of historical and ethnographic material from all corners of Crete and especially in the Prefecture of Rethymno, as well as the stimulation of interest in the population to the study of the Cretan traditions. The Museum has a multifunctional hall equipped with latest audio and video systems, which hosts lectures and various cultural events.