The idea behind the creation of the site was to collect objects that speak of the past. The aim was to save the memory of the culture and customs of the region, and to collect memorabilia. The originators belonged to the Club of the Polish Tourist and Sightseeing Society, and the project was conceived in 1956. Among the most valuable exhibits acquired in the first few years were a document featuring reproductions of works by Jan Matejko, who immortalised the wooden buildings in the town square during his stay in Muszyna; photographs of original regional costumes; a 16th-century weaving workshop made without the use of nails; and the lantern of a night watchman who played the hours on the horn during his rounds. The museum houses an exhibition on the history of the 'Muszyna State’. In it, you can see memorabilia of former mayors, Muszyna burghers, and the Lemkos and Jews who lived the region. The museum has a rich historical and ethnographic collection, as well as valuable artefacts, bourgeois chests, militaria, and Judaica. There is also a room dedicated to so-called ‘naïve’  art done by people with no professional training, with Nikifor's works at the forefront, in addition to artwork by local artists. The term ‘Muszyna State’ was used to describe the complex of properties of the Bishopric of Kraków, located in the Sącz region, which included the towns of Muszyna and Tylicz along with adjacent villages, with Muszyna serving as the administrative centre. For the above-mentioned complex of estates, we come across a number of other terms in sources and literature, such as: Muszyna borderland (kres muszyński), bishop borderland (kres biskup), Muszyna starosty (starostwo muszyńskie), bishop state (państwo biskupie), or Bishop land (Biskupszczyzna).

The museum has a conference room where museum lessons, chamber concerts, poetry meetings, vernissages, conferences and other gatherings are held with the primary aim of 'commemorating' and 'remembering'.