In July 1876, the Mechanics' Institutes Trust received the land, believed to be a donation from local landowner, parliamentarian and 8th Premier of Victoria, Sir Charles Gavan Duffy.
Performers at the opening ceremony concert included local landowner, comedian and parliamentarian, the Honourable George Coppin and his daughter, Blanche.
On 24 January 1885, a special concert was held at the Institute featuring Dame Nellie Melba.
In March 1994, a gallery extension was built using grants from the Commonwealth Government and the local Shire.
Sorrento Museum features several rooms of display tracing the history of the area, including original items from the Collins Settlement in 1803, which was the first European settlement in Victoria, as well as shipwreck artefacts, Boon Wurrung stone tools, and memorabilia from early tourism in the area.