The Carpet Museum, where unique samples of applied arts are exhibited, has been located in different places throughout its history. Under instructions of President Ilham Aliyev, the government decided to construct a separate building for the museum with the aim of expanding its capabilities and effectiveness of demonstrating carpets that represent unique pearls of Azerbaijan.

The foundation laying ceremony of the building was held at the Seaside National Park on May 15, 2008. Its design is reminiscent of a rolled up carpet, The Heydar Aliyev Foundation and UNESCO e contributed to the construction of the facility.

The new building houses 13,300 exhibits and items, including carpets, thread-work samples, metalwork, fabrics, clothing, ceramic, glass, wooden and paper items, jewellery, books, and a unique collection of photographs.

The exhibits are conserved on the basis of recommendations and instructions of Louis Sguirer, a renowned specialist in fabric conservation at the Victoria and Albert Museum who was invited to Baku in 2013.