With architectural and museographical design by Mário Varela Gomes, the museum opened its doors to the public on 25 May 1995. It features a long-duration exhibition that relates the history of the territory of Loulé, from prehistoric times to the modern day. The exhibition comprises the most significant objects, which were selected and gathered from various parts of the municipality as a result of research projects, prospecting and the occasional find.
Since it had a large collection of archaeological materials at the time of its inauguration, the museum was named the Loulé Municipal Archaeology Museum. However, this title was later restructured as the museum adopted the identity of a territorial museum, operating as a network of various hubs throughout the municipality.