It features works of famous Danish designers like Arne Jacobsen, Jacob Jensen and Kaare Klint, who was one of the two architects who remodeled the former Frederiks Hospital (built 1752–57) into a museum in the 1920s.

A purpose-built building designed by Vilhelm Klein and located next to Industriforeningen's premises on City Hall Square was completed in 1894 and opened to the public the following year.

The exhibitions were housed in separate galleries, each dedicated to a particular field such as porcelain, faience, silver, furniture, glass and textiles.

This arrangement reflected the primary aim of the museum which was to serve as a source of inspiration for craftsmen and manufacturers by highlighting the very best in craftsmenship and design from different ages.

[2] In 1926 the museum moved to its current building, the defunct Frederick's Hospital from 1757, a gift from the banker Emil Glückstadt.