The museum was founded on June 10, 1989, by the decision of the Nei City Executive Committee. Since January 1, 1990, it has been part of the Ipatiev Monastery Museum-Reserve, and since August 10, 2005, the Nei branch has been included in the Kostroma State Historical, Architectural, and Art Museum-Reserve. On July 2, 2018, the municipal state institution 'Nei Local History Museum' was established.

The first director and founder of the museum's collections was Albert Afanasyevich Yuryev. Ivan Alexandrovich Novozhilov, the first curator of the museum and a participant in the Great Patriotic War, was awarded two Orders of the Red Star, the Order of the Patriotic War 1st class, the Zhukov Medal, the 'For the Defense of Stalingrad' medal, and other awards.

Visitors to the museum are particularly attracted by household items, photographs, and documents from the 1900s and 1960s. Documents and photographs from the 1930s and 1950s are of special interest, as well as collections of toys, samovars, porcelain, glass, ceramics, clocks, gramophones and phonographs, numismatics, bells, irons, household items, and post-war fashion accessories.

The museum's funds are represented by permanent exhibitions and displays located on two floors. Here, one can see collections of numismatics, banknotes, orders, porcelain, glass, ceramics, measuring instruments and mechanisms, as well as household and artistic metal, photographs, phonographs, fabrics, toys, and paintings.