The museum was founded in November 1920 by the decision of the Executive Committee of the Izhevsk City Council and was originally called the Izhevsk Local History Museum. Its founder and first director was veterinarian A. M. Filippov, who combined this work with his main activity.

Throughout its history, the museum has changed its name several times. In 1929, it became the Regional Local History Museum of the Votka Autonomous Region, in 1935, the Local History Museum of the Udmurt ASSR, and in 1947, the Udmurt Republican Local History Museum. In 1995, by the decision of the Government of the Udmurt Republic, it was renamed the National Museum of the Udmurt Republic, and on April 24, 2000, it received its modern name in honor of the Udmurt poet and public figure Kuzebay Gerd.

The first museum exhibits were transferred in 1921 from the veterinary clinic to the building of the former German church at 9 Sovetskaya Street. In the early years, the museum faced financial difficulties, which nearly halted its operations. In 1922 and 1923, the staff was reduced to one person, who combined the duties of the manager and the watchman. On April 1, 1924, manager P. A. Antonov was hired full-time. In the 1924/1925 year, the museum was visited by 27,329 people, and by October 1, 1925, its collection numbered 1,508 items.

In March 1926, Kuzebay Gerd became the museum director, arriving from the graduate school of the Eastern Research Institute in Moscow. P. A. Antonov remained the manager. In May 1926, the museum moved to the former house of merchant Novikov, and later to 7 Lenin Street. In 1926 and 1929, the director was M. I. Ilyin.

In 1929 and 1932, the museum was headed by G. F. Sidorov. In 1931, the museum moved to the building of the Alexander Nevsky Cathedral, and in 1932, to the Mikhailovsky Cathedral, where one of the first exhibitions in the country with a Foucault pendulum was created. In 1933 and 1934, the director was Y. K. Kondratiev, and in 1934 and 1937, A. S. Chetkarev. In 1937, the museum moved to 23 Karl Marx Street. In 1937 and 1939, the director was N. G. Timofeev, and in May 1939, he was replaced by M. E. Vorontsov.

In 1939, on the eve of the war, the museum's exhibits were evacuated to Sarapul, and only a branch, the house-museum of I. D. Pastukhov, remained in Izhevsk. In 1947, the collections returned to Izhevsk and were housed in the former home of Z. O. Lyatushevich. Since 1970, the museum has been located in the building of the Arsenal of the Izhevsk Arms Factory. In 1987 and 1994, during the renovation of the Arsenal, the museum was temporarily located at 214 Udmurt Street.

The museum has about 200,000 exhibits, including weapons, written sources, photographs, historical and archaeological monuments, national costumes, and peasant utensils. The exhibition area is 2,107 m², and it is visited by up to 200,000 people annually. The museum also has rare books, totaling 5,700 copies.

The museum building, previously belonging to the Arsenal, is a monument of 19th-century architecture. It has a U-shape, with the open part facing south, and occupies an area of 3,000 m². The architect was S. E. Dudin, construction began in 1823 and was completed in 1827. Emperor Alexander I, who visited the Izhevsk factory and Arsenal, awarded Dudin the Order of Vladimir 4th class. Originally, the building served as a warehouse for 75,000 units of small arms and samples of factory mechanisms.

In 1914, the stock workshop, previously located on the territory of the arms factory, moved here. In 1975, the Arsenal building was recognized as a federal monument of significance, and it was restored in 1987 and 1994.