The museum was founded in 1918 by self-taught archaeologist, artist, and local historian Pyotr Petrovich Ivanov in the building of the former shop of the Kaverin merchants. Since 1912, Ivanov had been striving to open a museum in Morshansk, but his dream was realized only six years later. It was the first district provincial museum opened in the first year of Soviet power. Ivanov created the museum based on his collection, which he had been gathering for 15 years. Initially, the museum's funds included over 2000 items from Ivanov's personal collection and only 144 exhibits donated by other individuals and organizations. Since 1925, the building has fully belonged to the museum. The art department was established in 1926, and since 1941, the museum has been a local history museum.

The museum houses many thousands of exhibits. It has departments for contemporary society, art, an exhibition hall, and a hall of ancient Russian art. The museum includes art and paleontological departments, a department for the Soviet period of history, and a department for the 'Pre-Revolutionary Past of the Morshansk Region.' The collection features ancient Mordvin burial mounds from the 8th and 11th centuries, as well as the second largest and highest quality collection of ancient Russian wooden sculpture in Russia.