The idea of founding a museum in Tržič was encouraged by the strong tradition in various trades and the wealth of technical and ethnological heritage. In 1952, members of the museum club were encouraged by the Slovenian Technical Museum to begin realising ideas about the foundation of a museum in Tržič by intensively collecting historical material to create four primary collections: technical, communist, archive-literary and art historical.
In all these years, the Museum association strived to acquire a building to house its administration. They acquired two buildings, Pollak’s kajžo, where they set up the first permanent exhibitions, and Germovko. They also began issuing various publications.
The year 1964 represents a turning point in the museum’s history as it was in this year that the museum was founded as a public institution. It was closely connected with the local tourist association and towards the end of the 1960s they developed tourist events together based on local heritage. In 1967 the museum acquired Kurnikova hiša.
In 1969 the Tržič Local Community built the gallery entitled Galerija Paviljon in which Tržič Museum held occasional art exhibitions and concerts and also issued various publications. In 1974 the museum, the adult education centre and the library united to form one organisation – the Tržič Institute for Culture and Education which in 2000 again separated into three independent institutions.
On this occasion Tržič Museum also became responsible for running the old Partisan printing works located above the Dovžanova soteska gorge. In 2007 the Guček family from Ljubljana lent Tržič Museum the largest winter sports collection in Slovenia and this was the basis for the Slovenian Skiing Museum which was founded in 2014.
Since 2009, Tržič Museum also runs the Galerija Atrij of the Municipality of Tržič which is the central gallery space for temporary exhibitions by artists, painters, sculptors, photographers, wood carvers, amateur collectors and others.
In 2013 the museum acquired the authorisation to be part of the national museum service and this enabled it to renovate its permanent exhibitions: in 2014 the shoe-making exhibition and in 2015 the leather-making exhibition.