In April 1967, the city committee of the Communist Party decided to create a museum in the city. A group of enthusiasts, passionate about history, began to form a public museum. In their free time and on weekends, activists visited homes, convincing the residents of Upper Ufaley to contribute to the creation of museum collections by gathering materials, historical information, and the first exhibits. Thanks to their efforts, the city museum opened on November 3, 1967.

In 1979, the museum became state-owned, and in 1986 it moved to one of the historical buildings of Upper Ufaley, the former trading shop of merchant Myasnikov. In 2004, the museum significantly expanded, occupying two beautiful merchant buildings in the city center, which later received the status of regional and municipal heritage sites.

The museum's permanent exhibitions introduce visitors to the life and customs of our ancestors, including ethnographic displays such as "Russian Izba" and "Bashkir Yurt," and also tell the history of Upper Ufaley, archaeology, the city's contribution to the war, events in Afghanistan and Chechnya, historical rehabilitation, and industrial enterprises like "Ufaleynikel" and "Ural Element." The Exhibition Center hosts exhibitions of paintings by local artists, photography masters, children's creativity, and various traveling exhibitions.

Since 2013, the museum has held a photo contest "The City I Live In," open to everyone. The contest aims to showcase the city from different perspectives.

In 2014, the museum became the initiator and organizer of the annual bell ringing festival "Ufaley Blessing," which attracts many participants and guests from the Ural region. The festival aims to revive the traditions of bell ringing during patronal feast days.

The museum's creative team successfully implements the program "Native Nest," dedicated to the history, culture, ethnography, and nature of the native land and city. The introduction of schoolchildren and preschoolers to the history of Upper Ufaley is based on authentic items and exhibits. The extensive museum collections, numbering about 23,000 items, make each encounter with history unique and captivating. Throughout the academic year, local history games for children of different ages are held to deepen their knowledge of their homeland.

The museum also organizes interactive programs for residents and guests of the city as part of the "Night at the Museum" and "Night of the Arts" events, as well as workshops in traditional and modern techniques.