At first, the museum consisted of just five cars and a small collection of automobilia displayed in the front hall of Lord Montagu's ancestral home, Palace House; but such was the popularity of this small display that the collection soon outgrew its home, and was transferred to wooden sheds in the grounds of the house.

[1] By 1964, annual attendance exceeded the half a million mark and a decision was taken to create a purpose-built museum building in the grounds of the Beaulieu estate.

Today, in addition to around 285 vehicles manufactured since the late-19th century, the museum has a collection of motoring books, journals, photographs, films, and automobilia of the world and is affiliated to the British Motorcycle Charitable Trust.

[8] Vehicles in the museum collection range from the earliest motor carriages to classic family saloons, motorsport cars, motorcycles, and World Land Speed record breakers.

The exhibit "World of Top Gear" showcased cars created and used by Top Gear presenters Jeremy Clarkson, Richard Hammond, James May, Matt LeBlanc, Rory Reid, Chris Harris, Paddy McGuinness and Freddie Flintoff from June 2009 until November 2024.

The collection includes The Whisper, a figurine commissioned by John Walter Edward Douglas-Scott-Montagu, the 2nd Baron to his friend Charles Robinson Sykes who sculpted a personal mascot for the bonnet of his Rolls-Royce Silver Ghost.