The foundation of the national flag Square was laid in December 2007, 30 in Bayil settlement of Baku-near the base of the Navy with the participation of President Ilham Aliyev.

In October 2009, President of the Republic of Azerbaijan Ilham Aliyev signed an order on "additional measures to accelerate construction and installation and improvement of the state flag Square in Baku".

From the presidential reserve fund provided for in the state budget of the Republic of Azerbaijan for 2009 to accelerate construction, installation and improvement works in the square, Baku City Executive Power received 10 million dollars.

It was planned to repeat the test process several times until the reopening of the square that was scheduled for November 8, 2024, Azerbaijan's Victory Day over Armenia.

The museum, created in the shape of an eight-pointed star at the initiative of President Ilham Aliyev, is located under the pedestal of the flagpole in the National Flag Square.

In the gallery, photos of the military parade on the third anniversary of the victory in the Patriotic War in the city of Khankendi and the raising of the State Flag in the territories freed from occupation by Commander-in-Chief Muzaffar are displayed.

Here, the State flag hung in the Parliament of the Azerbaijan Democratic Republic on December 7, 1918, photographs, banknotes, postage stamps of that period, as well as flags and coats of arms of the Azerbaijan USSR, constitutions adopted in different years, banknotes and postage stamps are displayed.

Flags, medals, emblems and chevrons of the Armed Forces of Azerbaijan are displayed in the exhibition hall.