The building of the museum was built in 1914 by Mr Tsogtbadamjav, a Buryat merchant as his property. During July and August of 1921, the building was used as an office of the Central Committee of Mongolian People’s Party Government, Headquarters of the army and Commander D.Sukhbaatar. The Embassy of soviet Tuva was located in the building after which it was converted into the museum of D.Sukhbaatar. In 1953, its exhibits were transferred to the museum of the Sukhbaatar and Choibalsan which was established on the foundation of the palace of Kh. Choibalsan, Mongolian party and political leader. In 1956, the museum was named as the “Museum of the history of Ulaanbaatar” with propose of telling the city’s inhabitants and its guests about the history and development of the capital city.  The museum tells the history since 1639 when G.Zanabazar was elected as the head of Yellow Sect of Buddhism in Mongolia.