It was the site of the former Selangor Museum. It was built by the British and Selangor governments in 1898 following the formation of Federated Malay States in 1896. However, during World War II, the right wing of museum was suddenly bombed and destroyed by Imperial Japanese Navy's air strike during the invasion of Kuala Lumpur in 1941(or it could have been a US B29 bomber, from the Allied Forces which erroneously bombed the, then, Selangor Museum).

After the Second World War, the left wing of Selangor Museum was still in use as a historical site. After Federation of Malaya achieved its independence on 31 August 1957, the federal government decided to build the national museum at the old site of Selangor Museum. Construction began in 1961 and completed in 1965. Muzium Negara was officially opened on August 31, 1963.

Displays and exhibits in the museum focus on local history, culture and traditions, arts and crafts, economic activities, local flora and fauna, weapons and currency.

The museum houses various galleries, each with its own theme. The Historical Gallery traces the different periods in the history of Peninsular Malaysia. The Cultural Gallery is a collection of various aspects of Malaysian culture, from common everyday pastimes to important ceremonial customs. Included in the exhibits are a Malay wedding scene, a royal circumcision ceremony, and a presentation on the heritage of the Peranakan community. The Metalwork and Musical Instruments Gallery showcases various objects and utensils from kitchenware and ceremonial ornaments to weapons and traditional instruments of Malaysian music.

The second floor is dedicated to Malay history starting with the Sultanate of Malacca leading all the way to independence. Exhibited are copies of the royal headgears of Malay rulers.