The Patan Museum was inaugurated in 1997 by  Late King Birendra Bir Bikram Shah. The museum quadrangle, known as Keshav Narayan Chowk, takes its name from the temple in the center of the mrain courtyard and is best known for its beautiful facade framing the golden door and window. This and two adjacent palace courtyards have it long and important history as a palace of the Malla kings of Patan. The renovation of this architectural gem for use as it Museum and educational and cultural center was a 14 year endeavor, funded by the Austrian Government and directed by the architect Gotz Hagmuller. The idea of establishing a new museum of Nepali art in this historic building was an obvious one. Two comprehensive state collections existed in Patan but they were inadequately displayed and researched. A majority of the sculptures in these collections are actually stolen objects which have been recovered by Nepali police and customs.

Mary S. Slusser, the eminent cultural historian, created the innovative spatial and educational design of the exhibition, choosing 200 objects from the existing collection of 1.500 pieces and providing the scholarly identification, dating, and description of each object. The Smithsonian Institution generously provided additional expertise in conservation and exhibition design. The main galleries are devoted to Hindu and Buddhist Sculptures of Nepal, many of which were created in the nearby workshops of this citv, a centre of ntetalcraft for the region. The techniques of "lost wax" metal casting and repoussc are explained in the Technology Gallery.
As Patan is known for its Buddhist architecture, a special section focuses on ancient Buddhist monuments known as chaityas or stupas, using models, drawings and photographs as well as devotional objects. In addition, there is a fascinating collection of
historic views, documenting the Kathmandu Valley a century ago.