Established in 1988, when Melina Merkouri was minister of culture, the museum is part of the Lyceum Club of Greek Women founded by Kalliroi Parren in 1910; its collection of costumes and apparel were begun by Parren herself.

The museum contains over 25,000 costume-related items from every corner of Greece and its historic fatherlands in Asia Minor and the Balkans.

The museum’s collection was originally used to dress dancers in traditional Greek costumes for performances at the Lyceum Club.

The museum has been part of the International Council of Museums (ICOM) since 1997. It is housed in a minimalist 1920s building at 7 Demokritou Street, an excellent example of early modernist architecture.