The Museum of folk arts and crafts in Zagreb, was founded in the 1880s, on the initiative of the Society of Arts. The Museum became one of the first institutions of its kind in Europe. In 1882 the Museum was created school of crafts, which is now the School of applied art and design. The project of the Museum building was designed by architect Herman Bolle in the spirit of the German Renaissance.

The beginning of the Museum's Foundation was laid several years before the official opening by Bishop Strossmayer. Donations Isidora Krchnavy at a Paris auction in 1875 purchased the collection of the Catalan artist and collector, the Mariana Fortune. From the 1880s, the collection was enriched not only in Croatia but also throughout Europe. Much of the Museum Fund was received from private collectors.

In the early years, the Museum was located in a rented building at street Mary Valeria (currently - Prague street). In the current building, the Museum moved in 1909, at the same time was opened, and the permanent exhibition. In 1919 the Museum was opened the Museum of modern art. Later from the Zagreb Museum of folk arts and crafts was separated Ethnographic Museum.

From 1933 to 1952, the Museum was under the direction of the Director Vladimir Tkalich. During this period he created a new exhibition consisting of photos, graphics, print products. The Museum was established restoration workshop. Since the 1950s, the Museum is actively exhibitions are held.

After the breakup of Yugoslavia and hostilities of this period the Museum was opened in 1995 after the reconstruction and restoration of the building. Today the Museum's collection is about 100 thousand items of fine and applied arts, dated 14-21 centuries. In the library of the Museum more than 65 thousand books on decorative arts.