The museum was opened in 1990, although efforts to preserve artifacts related to Australia's naval aviation history began in 1974.

The museum houses aircraft used throughout the history of the Fleet Air Arm, the naval aviation branch of the Royal Australian Navy (RAN), along with other aircraft of relevance to Australia's aviation history, and memorabilia relating to Australian aircraft carriers.

The museum building is also home to Albatross Aero Club.

The Fleet Air Arm Museum can trace its origins to 1974 when a group of volunteers associated with the Royal Australian Navy (RAN) obtained five obsolete RAN aircraft and began work to establish a museum for display of artifacts to present the story of Australian Naval aviation.

$80m were raised from various sources for a large hangar and function centre.