Earlier this building was the summer palace of Kashmir Maharajas. The main attractions of the museum are the 3rd and 4th century terracotta heads from the Buddhist site at Ushkur and the 4th and 5th century moulded terracotta plaques from Harwan.

Other varieties include green stone images of Lord Vishnu on Garuda, a Gandhara-style fifth century copper image of Lord Buddha and 11th century brass figure of Lokeshvara. Also, shawls, paintings, arms and armory, Ladakhi handicrafts and coins from the Kushan and Gandhara periods are displayed.